Downward Trend in the Crypto Market
During the recent downturn in the cryptocurrency market, numerous high market cap cryptocurrencies have encountered substantial value losses. One such cryptocurrency is Solana (SOL), which has witnessed a decline of over 5% within the past week, leading it to plummet to the crucial support level of $20.
Current State of the Crypto Market
The cryptocurrency market experienced a rapid decline following Federal Reserve Chairman Powell’s indication that interest rate hikes might persist. Bitcoin (BTC), the flagship cryptocurrency, saw its value plummet to $25,800 within a matter of hours after incurring losses, and the downward trajectory continued throughout the day.
As BTC’s value declined, a multitude of altcoins in the cryptocurrency market also saw an acceleration in their value losses. According to data from CoinMarketCap (CMC), the total market capitalization of the cryptocurrency ecosystem contracted to $1.04 trillion. Notably, Solana (SOL) experienced a nearly 4% loss during the day, causing it to drop to the $20 price range.
Intensifying Decline in Solana (SOL)
SOL, the native cryptocurrency of the Solana blockchain, exhibited relatively subdued price performance compared to several other high market cap cryptocurrencies throughout the week. Despite briefly reaching $22 levels, SOL was unable to maintain these prices due to the prevailing downtrend in the cryptocurrency market. The cryptocurrency briefly slipped below the $20 threshold. As of now, Solana (SOL) is being traded at approximately $20.28.
Following these recent value declines, the market capitalization of Solana (SOL) has dwindled to $8.2 billion. Additionally, there has been a notable drop in trading volumes, with SOL’s 24-hour total trading volume plummeting by more than 20%. Consequently, SOL emerged as the cryptocurrency with the highest percentage of value loss among the top 10 cryptocurrencies in terms of market capitalization over the past week.
