đȘInvestors Flee from Solana! Capital Outflow Reaches Record High â ïž
Over $39 million has been withdrawn from Solana-based investment products, marking the largest weekly outflow in history. But whyâ
âïžToken Paper explains:
Decline in Memecoin Trading:
đșTransaction volumes for memecoins across all blockchains, including Solana, have dropped by 86% since their peak in March.
đș Solana heavily relies on memecoin trading, so this decline hit the ecosystem hard, affecting the SOL token price.
Overall Crypto Market Correction:
đč After a 20% rebound from August 5 lows, the crypto market corrected, with the total market cap falling to $2.07 trillion.
đč This market-wide downturn likely impacted Solana's investment products.
Macroeconomic Factors:
đč CoinShares attributed the drop in trading volumes to recent macroeconomic data suggesting that the Fed is less likely to cut interest rates by 50 basis points in September.
đč Expectations of tighter monetary policy may have led to capital outflows from risky assets like cryptocurrencies.
Thus, a mix of declining memecoin popularity, a general crypto market correction, and Fed rate hike expectations has led to a record capital outflow from Solana-linked investment products.
đ„ If you think this is concerning, drop a fire. If you believe Solana will bounce back, show some like.
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