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The cryptocurrency market is experiencing a sharp decline, causing concern among investors. Bitcoin (BTC) has fallen over 10%, now at $53,270, while Solana (SOL) the 5th largest cryptocurrency has dropped to nearly 17%. Meanwhile, the overall crypto market value has decreased by 13% to $1.87 trillion, even though trading volume has jumped by 119.72% to $142.44 billion.
Why Solana’s Price is Falling
Interest in Solana has grown as traders look forward to the upcoming Solana ETFs in the U.S. Amidst this, the recent drop in crypto prices is linked to a sell-off in the Japanese stock market, with the Nikkei 225 index falling by 7.1%.
On August 2, Japanese bank stocks experienced their worst day since 2008 after the central bank raised interest rates. This sudden market crash wiped out about $500 billion from the total crypto market in three days, the biggest loss in over a year.
On August 2, Japanese bank stocks experienced their worst day since 2008, following the central bank’s decision to raise interest rates. This sudden market crash resulted in a brief wipeout of about $500 billion from the total crypto market capitalization over three days, marking the largest 72-hour loss in more than a year.
Solana’s Strong DEX Performance
Despite the broader market downturn, Solana’s decentralized exchange (DEX) performance has been strong. In July, 30% of crypto DEX volume came from protocols built on the Solana network, surpassing Ethereum’s 28.12%.
By the end of the month, Solana’s DeFi ecosystem had processed $56.849 billion in transactions, while Ethereum had handled $53.867 billion.
Solana Price Analysis
As of now, Solana (SOL) is currently trading at $121.58, reflecting a drop of 15.76% in the last 24 hours and 37.2% over the past week. If the price drops below $115, it might fall further to the support level of $107. On the other hand, if it rises above $135, it could reach the resistance level of $164.