Solana under potential capitulation as SOL price drops below key metric for first time since 2022



Solana’s price falls below key technical level for the first time since March 2022, signaling potential extended decline ahead.



The price of Solana, once the third-largest token by market capitalization, after Ethereum 

and Bitcoin, has plunged below the realized price level on March 11 for the first time in almost three years.



The price of Solana 

Solana

sol-2.44%Solana, once the third-largest token by market capitalization, after Ethereum 

Ethereum

eth-7.94%Ethereum and Bitcoin 

Bitcoin

btc-0.45%Bitcoin, has plunged below the realized price level on March 11 for the first time in almost three years.



The last time SOL fell below that technical level was in March 2022, when the price entered a multi-week slide, only recovering above that level in November 2023. However, there have been cases where the price briefly dropped below this metric, such as in November 2020, when it dipped below $2, but then recovered by February 2021, Glassnode’s data shows.

It’s unclear how things will unfold this time, as SOL’s decline coincides with a broad market selloff. Data from DefiLlama also shows that Solana’s fee revenue has plummeted to around $420,000 per day, a 90% drop since January when SOL was trading at $250, likely triggered by the memecoin frenzy.

In October 2023, asset management firm VanEck predicted that Solana could see a 10,000% growth in value by 2030 if the blockchain attracts 100 million users. In its diverse valuation scenarios, VanEck acknowledged a bearish case, where SOL could trade around $9.81, though it also noted that a bullish scenario could push the SOL price above $3,200 by 2030.