Solana drifts sideways to summer 2021 levels with current market drop
According to CoinMarketCap, the value of Solana (SOL) is down 20% since June 27. The massive weekly drop of a fifth of SOL’s already severely depressed price has made Solana the hardest-hitting crypto project in the top 10 by market capitalization.
Trading last Monday at $41.25, the SOL has been falling steadily for a week, closing the session in red candles day after day. The maximum pain was on July 2 at $30.92, when it was down 25% from the beginning of the week. After a small 5% pullback, the coin went in a sideways drift to end 2021 levels and was quoted at $32.9.
Additionally, Solana’s capitalization fell by $2.7 billion to $11.3 billion, allowing the project to place ninth in the top 10, but just enough to keep Dogecoin (DOGE) at bay. Cardano (ADA) and XRP are leading the way with a margin of at least 4 billion, and most of BNB, currently estimated to be worth three times that of Solana. The eventual owner, Ethereum (ETH), with a valuation of $128 billion, is still out of reach for SOL.
What can make the quotes of Solana (SOL) happy?
Excluding macro and microeconomic factors, let’s try to find potential growth drivers for SOL. For example, we can note that Solana developers are not wasting time on Solana phones and also working to improve the ecosystem, whose frequent breakdowns have already become a victim of jokes.
In late June, the launch of QUIC/stake-weighted QoS/local fee market technologies was announced. QUIC, a protocol for optimizing and optimizing data reception, has already been observed in test networks. Perhaps improving network operations and validator performance will have a favorable impact on Solana’s reputation and encourage greater adoption.
Solana investors and holders can also get encouragement by comparing the current SOL chart with the 2016-2019 ETH chart. The similarity is quite clear, especially since Solana sees Ethereum (ETH) as its main competitor. At the time, ETH, after an impressive increase of over 20,000%, corrected by 93% and was valued at $82 per coin. We all know what happened then.