The cryptocurrency market experienced a significant downturn over the weekend, with Solana (SOL) leading the decline despite recent record transaction volumes on its network. The price of SOL fell to $210 on Sunday, representing a nearly 30% decrease from its year-to-date peak, and reducing its market capitalization to $103 billion. At the time of reporting, SOL was trading around $212. This sell-off is not isolated to Solana, as the broader cryptocurrency market also saw substantial losses.
Solana Network Activity and Price Volatility
Despite the recent price decline, the Solana network achieved a record monthly transaction volume of $258 billion in January, according to data from DeFi Llama. This figure contributed to a total transaction volume of over $969 billion for the network, positioning it to potentially surpass the $1 trillion milestone in February, given its current weekly volume exceeding $40 billion. Key decentralized exchanges (DEXs) on the Solana network, including Orca, Meteora, Lifinity and Raydium, accounted for a significant portion of this volume with over $120 billion in transactions during the month. The surge in network activity was partly driven by meme coin launches such as Official Trump (TRUMP), which reached a market cap exceeding $15 billion before experiencing a substantial correction.
> Solana’s price has dropped almost 30% from its peak despite record transaction volumes in January. > The broader cryptocurrency market also experienced declines, with total market capitalization falling nearly 4%.
Broader Market Trends and User Activity
The decline in Solana’s price mirrors a wider sell-off across the cryptocurrency spectrum. Bitcoin (BTC) briefly dipped below $100,000 while the total market capitalization of all cryptocurrencies decreased by approximately 4% to $3.4 trillion. Notably, despite robust network activity and volume growth, the number of active Solana wallets has decreased. The number of active wallets fell to 3.6 million, down from 6.5 million on January 19. Additionally, data from SolScan indicates that over 78,000 new Solana tokens are created daily.
The source indicated the data was provided by CoinGecko for price information and DeFi Llama for transaction volumes. Additional data points were derived from SolScan regarding token creation and wallet activity.
Source: Tech | Bitcoinethereumnews.com
