Is the entry of institutions sure to lead to a crash?
In the past few days, it has been reported that multiple institutions have hoarded $SOL , but it has instead been declining. Why is this?
Recently, many institutions have been hoarding SOL, yet it continues to drop, and the reason is quite obvious. First, there have been serious security issues; on August 24, Solana's Jupiter DEX was hacked, losing 50 million dollars in just 15 minutes. This is already the third incident this month, with previous issues in the NFT market and Raydium pools, totaling over 62 million in losses.
Once this news broke, investors panicked, pulling their money out, and SOL dropped 4.5% that day. Coupled with the previous severe crashes of celebrity tokens, confidence in the Solana ecosystem was already low, and on-chain transactions have become increasingly quiet, with trading volume on decentralized exchanges decreasing by 20% weekly. The overall environment is poor; people are hesitant to touch risk assets, and there is no reliable news from regulators. With so much bad news piling up, even if institutions are buying, they can't withstand the falling prices.
In fact, it should be understood that the drop in SOL indicates institutions entering the market to accumulate.
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