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Solana's price has taken a tumble in the last month.
Solana prices have declined more than 40% in roughly a month as multiple bearish factors combined to create what one analyst described as a “perfect storm.”
SOL, the native digital asset of the high-performance blockchain platform Solana, fell to almost $160.00 on Tuesday, February 18, according to Coinbase data from TradingView.
At this point, the cryptocurrency had dropped close to 45% after climbing to approximately $290.00 on Sunday, January 19, additional Coinbase data from TradingView reveals.
“Solana’s recent 40% price drop can be attributed to multiple converging factors,” Aran Hawker, CEO of CoinPanel, who provided the “perfect storm” description, stated via email.
“The meme coin frenzy that once fuelled excitement has cooled, leading to declining investor confidence,” he said.
“Additionally, on-chain activity has plummeted, with active addresses and transaction volumes sharply decreasing,” noted Hawker.
Recently, the X (Twitter) account of blockchain analyst Ali (@Ali_charts) shared a Glassnode graph indicating that the number of active addresses on the Solana declined from more than 18.5 million in late October to less than 8.4 million on February 15.
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, also commented on these developments, emphasizing that they reduced both under engagement and demand.
