#FTXrepayment

Solana "Falls" Without Stops: What's the Real Cause?

Solana

The current SOL price is trading around $160~167, SOL has been fluctuating in recent hours and there are a few factors that could explain this situation:

🔷 Reasons why SOL price may be correcting:

USDC on the Sol ecosystem is decreasing

USDC Amount on the Solana ecosystem is decreasing: There are signs that the amount of USDC (USD Coin), a popular stablecoin, is decreasing on the Solana ecosystem. USDC is often used for trading and providing liquidity on Solana's DEXs. The decrease in USDC could indicate:

Capital outflow from the Solana ecosystem: Investors may be withdrawing capital from DeFi applications and projects on Solana, leading to a decrease in demand for USDC.

SOL selling pressure increases: To withdraw funds, users can sell SOL in exchange for USDC, putting downward pressure on SOL.