The value of Solana (SOL), the cryptocurrency known for its speed and efficiency, has experienced a drastic decline of over 30% since the end of November 2024, generating concern among the investor community.
After a period of notable boom that led it to touch a new all-time high (ATH) of $264 in November, even surpassing its records from 2021, Solana has entered a pronounced bearish phase. Currently, its quotation hovers around $185, evidencing a depreciation of nearly 30% from its recent peak.
What is behind this decline? Various factors converge to explain this sharp drop. Among them, the following stand out:
Instability of Bitcoin and profit-taking: The inability of Bitcoin to maintain the $100,000 barrier, coupled with the common practice of investors securing profits at the end of the year, has exerted downward pressure on the price of SOL.
Decrease in transactions and Total Value Locked (TVL): A notable reduction in transaction volume and the TVL of Solana has been observed, indicating lower participation and capital flow in its ecosystem, in contrast to the rise of new platforms like Hyperliquid.
Future Outlook: Uncertainty and Cautious Optimism
While experts agree that this 30% correction (adjustment, decline) in the value of SOL could be considered a healthy market rebalancing (equilibrium, stabilization) process, opinions about its immediate future are divided. Some analysts predict a gradual recovery (restoration, improvement), supported by ongoing technical improvements and increasing adoption (acceptance, use) of decentralized applications (dApps) within the network.