Solana's value will plummet in the near future!
Here are the reasons:
Solana's native token SOL has fallen sharply recently, hitting a six-week low.
The drop has led to the liquidation of a large number of long futures contracts, indicating that investors may be too optimistic after the SOL price rose in March.
So why did Solana fall?
First of all, Solana's current market value is higher, higher than Avalanche and Tron. Some people believe that this is because the Solana ecosystem is expanding rapidly and many projects have launched their own tokens.
Coinbase Wallet recently completed integration with the Solana decentralized exchange ecosystem, supporting more than 50,000 Solana SPL tokens. This integration simplifies the transaction process and lowers the threshold for entering the Solana ecosystem.
The Solana network has recently experienced serious congestion problems, with a transaction failure rate of up to 75%. To solve these bottlenecks, developers have introduced new upgrade measures. But due to network problems, some projects have postponed the release of tokens.
In addition, some important projects based on Solana have failed, such as MarginFi, which has increased the pressure on SOL. After MarginFi's CEO resigned, a large amount of funds were withdrawn from the ecosystem, and other Solana-based projects also criticized MarginFi, which shows the variability and challenges within the Solana ecosystem.
Finally, we can see that Solana SPL tokens have generally fallen.
For example, JTO has fallen 29% since April 12, and RAY and JUP have also fallen 24% and 27% respectively. At the same time, some popular Solana memecoin projects such as WIF have also experienced a sharp drop of 32% in just six days.
In general, the reasons for Solana's recent decline mainly include network congestion, failures of important projects, and changes in the overall market
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