Before analyzing what’s going on at Solana (Sun), it’s important to briefly review the latest events that have caused red tides in financial markets, including Bitcoin (BTC) and cryptocurrencies.
As Cryptonoticias reported on March 4th, US President Donald Trump unleashed the commercial war After confirming 25% tariffs on imports from Mexico and Canada, 20% in China’s acquisition. He also made clear that he intends to apply taxes to certain European Union products.
Seeing the negative effects of the measures, he postponed the application of tariffs until early April after maintaining dialogue between Mexican and Canadian authorities. But this was not enough to leave the ghost of The economic recession of major financial power.
Bad news doesn’t end there. This Monday, Japan’s performance in 2020 reached 2,265%the highest level since 2008in the context of expectations of increased interest rates and inflationary pressures.
This increase creates risk aversion in the market. Investors in that country have made carry trade even more strongly and discouraged by taking loans in that currency, buying dollars, and investing in assets considered risky, such as BTC and cryptocurrency.
One of the coins most affected by this general market collapse is Solana. It fell below $120 Therefore, we have erased all gains accumulated over the last 12 months.
As you can see from the CoinMarketCap graph, 12 months ago the SOL quote was $144. At the time of publication of this memo, it is $117. Represents a 20% annual decline.
Apart from the macroeconomic situation, the reputation of the Solana Network has been significantly punished after it happened in the launch of the official Mimecoin of Donald Trump (Trump) and his wife Melania (Melania).
It’s worth noting that Trump’s appearance literally smashed the market and took Sol to him $293.
On the issue, analysts at the site The Token Dispatch said, “before both tokens collapsed epicly, they shot themselves until they first reached a valuation of millions, leaving them with massive losses to most investors.”
To size the loss, Trump shot up to $75 in some of the launches, then fell to a minimum of $5. Meanwhile, Melania has recorded a loss of over 90% since its market debut on January 19th.
Two weeks later, the Libra scandal broke out. This is a Solana Token promoted by Javier Mailey to promote the growth of Argentinean companies. However, the launch was full of extraordinary things, Many view it as a scam.
As reported by Cryptooticias, it was total 74,698 traders affected by Libra. Of that number, 71,369 registration losses were up to $10,000, while 2,409 lost between $10,000 and $50,000. Another 438 traders were seen in each other between $50,000 and $100,000, with 318 suffering losses ranging from $100,000 to $250,000. Additionally, 87 traders lost more than $250,000, 52 lost more than $500,000, and 25 saw more than $1 million from their hands.
As a result of this bad news cocktail, many users have left that network.
“If the current wounds of Solana can be traced to the time when the origins of fate became a political toy,” they said.
But while panoramas are not encouraging the sun, there is light at the end of the tunnel.
As reported by Cryptootics, Bitwise, Vaneck and Grayscale companies filed their respective applications with the U.S. Stock Exchange and the Securities Commission (SEC) and listed the bottom (ETF) cited based on the Sun base.
These products They can increase the sun exposure among traditional investors It attracts more fluidity to the ecosystem.
Anyway, this may not be the case. As with Ethher ETF (ETH), the traditional currency of Ethereum. Since its launch in July 2024, they have not had a great performance.
For Token Dispatch analysts, it is important that Solana stops in response to memokine and begins work on projects that create sustainable value.
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