$SOL why is sol dumping 🤔?
The primary reason for Solana's (SOL) recent price drop is tied to FTX's bankruptcy repayment plan. Here's a concise breakdown:
* FTX's Repayment:
* FTX is planning to repay its creditors a substantial amount, with a significant portion of those repayments being in Solana (SOL) tokens.
* Increased Selling Pressure:
* This means a large volume of SOL tokens is entering the market, as creditors may choose to sell them.
* This influx of supply creates increased selling pressure, which in turn drives the price down.
* Other factors:
* Also the cooling of the memecoin market on the solana blockchain, and some "rug pull" scandals have also contributed to the price drop.
In short, the fear of a large increase in the supply of SOL tokens due to the FTX repayment plan is the key factor behind the current price decrease.