Solana (SOL) has experienced a notable decline in its price towards the end of June 2024 due to several factors:

1. Market Correction and Competition from Ethereum: The broader cryptocurrency market has been undergoing a correction. Specific to Solana, there has been a shift in investor interest towards Ethereum, especially with the increasing likelihood of the approval of spot Ether exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). This has led to a significant outflow of investment from Solana to Ethereum

[oai_citation:1,Solana: How High Can SOL Rise in June 2024?](https://watcher.guru/news/solana-how-high-can-sol-rise-in-june-2024) [oai_citation:2,Why is Solana (SOL) price down today?](https://cointelegraph.com/news/why-is-solana-sol-price-down-today).

2. Network Issues and Decline in Usage: Solana's network has faced centralization issues and outages, which have affected its reliability. Additionally, there has been a reduction in the total value locked (TVL) in Solana's ecosystem and a decline in the number of active addresses and decentralized application (DApp) usage

[oai_citation:3,3 key Solana metrics explain exactly why SOL price is down](https://cointelegraph.com/news/3-key-solana-metrics-explain-exactly-why-sol-price-is-down) [oai_citation:4,3 reasons why Solana (SOL) price is down this week ](https://cointelegraph.com/news/3-reasons-why-solana-sol-price-is-down-this-week).

3. Excessive Optimism and Airdrop Disappointments: There was excessive optimism in the Solana community due to anticipated airdrops from various new projects. However, many of these launches were delayed or did not meet expectations, leading to a temporary boost followed by a decline in interest and token valuations

[oai_citation:5,3 reasons why Solana (SOL) price is down this week ](https://cointelegraph.com/news/3-reasons-why-solana-sol-price-is-down-this-week).

These factors combined have contributed to the downward pressure on Solana's price and its underperformance relative to other major cryptocurrencies.