A surprising development for the network, Solana (SOL) has lost a remarkable $3 billion from its market cap in the last 24 hours alone. Indeed, the decline has arrived parallel to a bullish correction taking place in the market currently. Subsequently, Solana is one of the extreme examples of a reversal from gains throughout the sector last week.
The drop in Solana’s market cap equates to a more than 6% decline over the last day. Specifically, this shows that the asset’s overall value has fallen from $48.58 billion to just over $45.5 billion. Moreover, that has ultimatley influenced a drop of more than 6% in the price of SOL according to CoinMarketCap.
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Solana Suffers $3 Billion Correction as Price Continues 10% Drop
Throughout 2024 thus far, the digital asset market has experienced overwhelming positivity. Indeed, a host of assets have seen further increases through the first two months of the year. Moreover, they have been led by Bitcoin (BTC) which firmly surpassed the $52,000 mark last week.
However, a correction is taking place, with some cryptocurrencies hit harder than others. Specifically, Solana (SOL) has lost $3 billion from its market cap in the last 24 hours alone. The development is certainly a difficult one for the asset and has preceded a fall in the value of the SOL token.
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The price of SOL is currently just above $103 but is down more than 6% over the last 24 hours. Subsequently, those losses are only magnified when it is put in a greater context. Indeed, over the last week, the asset is down more than 10.7%. Yet, it is still up more than 16% over the previous months, noting that things may not be as dire as they appear.
There is little circumstantial evidence that explains the drop, with the Solana ecosystem privy to some positive developments recently. Within the DeFi sector, the total value locked in Solana projects surpassed the $2 billion mark this week. Moreover, the value staked is currently at $1.98 according to DeFi Llama today.
Now, all eyes are on where the price of SOL could go from here. Specifically, the market is eager to observe if the fall could perpetuate, or reverse in the short term. There is little optimism, however, as the relative strength index for SOL has fallen below 50. Therefore, reinforces that further declines could be in play for the digital asset.