Cryptocurrency has lost over $3 billion in market capitalization in the last seven days
Solana has moved into the group of negative highlights in the market in recent days. Data from the CoinGecko platform shows that it has accumulated a drop of 11.3% in the last seven days, losing more than US$3 billion in market capitalization.
Despite the losses, the asset remains among the five largest in the crypto world. The devaluation also occurs in the midst of an adverse period for crypto assets, with a widespread decline. However, sol's retreat is above the average for the main digital assets.
For analysts, Solana's recent devaluation reflects a combination of negative influences. In addition to the market's bad moment, the network has also had recent challenges, with falling fees and congestion in transaction processing, which tends to drive away users and alert investors.
On the other hand, analysts also point out that the intense connection between Solana and meme cryptocurrency projects may be weighing negatively in recent days. The segment has shown signs of slowing down, creating an expectation of lower activity on the network and resulting in a drop in solar.
This fear gained strength after digital influencer Andrew Tate made a post in which he said he would "take down the Solana network" and then stated that he burned around US$38 million in a meme cryptocurrency created on Solana, reducing its circulating supply by 58%.
There is also speculation surrounding a rumor of possible legal problems involving the project. The topic gained traction when a user made a post on X, formerly Twitter, in which he said that the blockchain was the subject of investigations that would be made public "soon".
The user did not provide any evidence to corroborate his statement, but the already negative context for Solana may have resulted in an aversion to risk among investors, making them more sensitive to rumors like the one shared recently.
Sol is one of the cryptocurrencies that appreciated the most in 2023, with an increase of more than 800%. The asset maintained an upward trajectory throughout the first months of 2024, consolidating itself as the fifth largest cryptocurrency in the world. In this sense, a period of price correction is also natural in market dynamics.
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