- Solana’s demand has changed significantly
- It may be worthwhile to examine the correlation between SOL demand and Solana stablecoin’s marketcap
Do you know? Solana Could the SOL ecosystem be a factor in SOL’s struggles to return above $200? Cryptocurrency showed robust demand during the first half in 2024. It bounced back strongly from every dip. SOL has not performed well in recent times.
SOL has had a weaker rebound over the last three months. This is consistent with Solana’s network observations. Solana’s recent marketcap growth shows a correlation to SOL’s prices.
Solana’s stablecoin’s marketcap briefly rose above $4 billion during the last week in August. It has seen significant withdrawals since then and now stands at $3.72 Billion. Last time, a similar dip occurred between mid-April and the end of June.
In the months of April and June, it was difficult for Bitcoin to return to its previous level of $200. Recent bullish efforts also showed weak momentum.
Has the Solana Network activity slowed down?
Solana’s marketcap for stablecoins has grown rapidly during times of market demand. Solana’s stablecoin marketcap grew aggressively during times of high demand. But the buzz around memecoins appears to be waning, especially after June.
It is easier to observe the decline in activity by looking at network charges. Solana’s fees peaked in March at the same time as network usage and utility.
Network fees are also calculated on SOL’s valueThe market also affected the price of. It may therefore not be the best way to assess network performance. Solana’s stablecoin is more closely tied to on-chain transaction.
Initial surges in transaction peaked in March, then a drop and an even higher peak was reached in July. Since then, transactions have slowed due to the network’s slowing utility.
The above data shows that network demand is waning, particularly in the past 3 months. The organic demand which boosted SOL’s stock value in the first part of the year is no longer as high.
SOL may not be bouncing back to its former strength.
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Source: ambcrypto.com