Solana (SOL), a major altcoin by trading volume, has slipped below the $100 threshold once again, influenced by Bitcoin’s price volatility and the associated risk of a deeper correction in altcoins. Investors are exercising caution in response to these market conditions, reflecting the unstable landscape of cryptocurrency investments.
In the span of two days, from January 30 to February 1, SOL Coin saw a 9.8% decrease, dipping below a key resistance level. Over the past 30 days, SOL has faced double-digit percentage losses, which is notable compared to the lesser fluctuations of cryptocurrencies like BNB and ETH. Despite this, SOL Coin is known for its high volatility and rapid recovery post-decline.
The market continues to feel the pressure from the US banking sector and the Federal Reserve’s interest rate policies. A case in point is New York Community Bancorp’s (NYCB) 40% stock drop after acquiring the failed Signature Bank and reporting a significant loss, highlighting the ongoing financial instability affecting the market.
Despite the market’s recovery from March’s banking issues, experts like BitMEX co-founder Arthur Hayes remain concerned about potential contagion risks and the threat of further bankruptcies within the financial chain, which could impact the crypto market.
SOL Coin’s market valuation once surpassed $45 billion when its price hit $104, overtaking BNB Coin in the rankings. This was a psychological milestone for SOL, which has a strong community and has been buoyed by recent airdrop events, despite a lower total locked value than BNB. The coin’s swift recovery, faster than rivals such as AVAX, can be attributed to the performance of BONK and other tokens within its ecosystem, as well as increasing interest in its DeFi, NFT, and gaming platforms.