🪙Investors Flee from Solana! Capital Outflow Reaches Record High ⚠️
Over $39 million has been withdrawn from Solana-based investment products, marking the largest weekly outflow in history. But why❓
✍️Token Paper explains:
Decline in Memecoin Trading:
🔺Transaction volumes for memecoins across all blockchains, including Solana, have dropped by 86% since their peak in March.
🔺 Solana heavily relies on memecoin trading, so this decline hit the ecosystem hard, affecting the SOL token price.
Overall Crypto Market Correction:
🔹 After a 20% rebound from August 5 lows, the crypto market corrected, with the total market cap falling to $2.07 trillion.
🔹 This market-wide downturn likely impacted Solana's investment products.
Macroeconomic Factors:
🔹 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.
🔹 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.
🔥 If you think this is concerning, drop a fire. If you believe Solana will bounce back, show some like.
#CryptoMarketMoves #BlackRockETHOptions #Write2Earn! #solonapumping #BTC☀
