$SOL The recent decline in Solana (SOL) prices can be attributed to several factors, including liquidity shifting to BNB Chain—now receiving renewed support from Changpeng Zhao (CZ)—and increased activity on the Ethereum network.

BNB Chain recently experienced a 37% drop in on-chain activity within a week, while decentralized application (DApp) transaction volume on the platform fell by 25%. However, CZ’s continued backing may restore investor confidence in BNB Chain, attracting liquidity away from Solana.

Additionally, Ethereum has shown a significant increase in transaction volume, reaching $60 billion in the past week—the highest level in three months. This resurgence in interest in Ethereum’s DeFi and NFT ecosystem may be drawing liquidity from other networks like Solana.

This liquidity shift could contribute to SOL’s price decline, which currently stands at $168.95, down 8.86% from previous levels. Meanwhile, BNB and ETH have experienced more moderate declines of 2.51% and 2.72%, respectively.

Overall, the combination of renewed support for BNB Chain and rising activity on the Ethereum network appears to have influenced the liquidity shift away from Solana, contributing to SOL’s recent price drop.