Solana (SOL) saw its market capitalization drop by over $3 billion in a single day. As the broader cryptocurrency market begins to correct after recent bullish gains, some assets are experiencing more significant and rapid declines.
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$3 billion drained from Solana in a Single Day
Solana’s market cap has decreased by more than 6% in the past 24 hours, falling from $48.58 billion to $45.54 billion. This represents a $3.04 billion loss in market value, according to data from the crypto analytics platform CoinMarketCap on February 21.
Solana’s price has also declined by 6.07% in the last 24 hours and by 10.78% over the past seven days. Despite this, it still retains a 16.94% gain over the previous month, currently trading at $103.41.
This downward trend aligns with the overall market sentiment in the cryptocurrency sector. Despite positive developments for Solana, such as its decentralized finance (DeFi) ecosystem exceeding $2 billion for the first time since June 2022, the market’s sentiment seems to outweigh these positives.
Total Value Locked on Solana Network
Recently, the total value locked in DeFi projects on the Solana network surpassed $2 billion, reaching $1.98 billion on February 20, according to data from the DeFi analytics platform Defilama on February 21.
Solana Integration with Filecoin
Solana announced its integration with Filecoin (FIL), a decentralized file storage network, to host Solana’s block history in the future. This move allows the Solana ecosystem and its projects to move away from centralized data storage solutions.
Following this announcement, Filecoin’s price surged by 24%, contributing to a 32.77% gain on its weekly chart. However, Solana failed to replicate this surge, with its relative strength index (RSI) falling below 50, indicating potential further declines.
Conclusion
To conclude, Solana (SOL) experienced a significant market capitalization drop of over $3 billion in a single day amidst a broader cryptocurrency market correction. Despite positive developments in its DeFi ecosystem and integration with Filecoin, Solana’s price decline reflects the prevailing bearish sentiment in the market.
Note: It’s a research based article not a financial advice
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