The native token of Solana, soil (ground), is up 17% after falling at least $ 125 on February 28. However, he encountered strong resistance near the $ 180 mark. Most importantly, the current price of $ 145 represents a drop of 50% compared to its summit of $ 295 on January 19, which raises concerns among traders concerning the soil capacity to find an bullish momentum.
While analysts attribute the sharp decline in soil value to the same market accident, ONCHAIN’s activity has decreased in various sectors, including liquid sticking, tokenized assets, performance aggregators, synthetic perpetuates, NFT markets and artificial intelligence infrastructures.
7 -day blockchain fresh Solana, USD. Source: Defillama
The decrease in blockchain activity suggests a reduced appetite for the soil, with Solana network fees from 73% compared to four weeks ago, according to Defilma data. Although the activity wave has been largely motivated by the launches of memecoin tokens and the trading of decentralized exchanges (DEX), the result of the ground loosening is the same.
The number of active addresses interacting with the Jito, the largest decentralized Solana liquid wake application, has dropped 56% in the last 30 days, in accordance with DAPPRADAR data. Similarly, the NFT Marketplace Magic Eden experienced a decrease of 38% of active addresses, while Save (formerly Solend), which offers guaranteed loans, experienced a 42% drop in users during the same period
In comparison, the number of addresses active on the basis, the Blockchain Ethereum Affan-2, decreased by only 2% over the same period. Even the base layer of Ethereum surpassed Solana, the number of addresses engaging with the DAPPs falling by 17% over 30 days. This suggests that the allocation of the soil underperformance only to the burst of the same bubble is less plausible, because other networks have not experienced a similar result.
Low leverage demand, robots and the lack of Trump Sol Upsy support limit
Another factor limiting the potential upstairs is the lack of interest of leverage traders. The financing rate on perpetual term contracts has been negative in the last three days, which means that short films (sellers) pay to keep their positions open.
Sol perpetual Futures Futures 8 Hour Funding Rate. Source: Coringlass
The current negative financing rate of 0.01% of 8 hours is not particularly worrying, as it translates into a cost of 0.9% per month. However, the lack of interest of leverage buyers after a 52% drop in its summit of all time is not a positive sign for the feeling of traders. On the other hand, unexpected news, such as the potential approval of a funded fund (ETF) fund in Solana in the United States, could surprise traders and trigger a short-covered rally.
For some criticisms, the potential of increased activity on the Solana network is less worrying. They argue that the story surrounding Solana is misleading, because 95% of the network fees came from only 1.3% of users, mainly drawn by Wintermute, a marketing company and maximum extractable value robots (MEV).
Source: arndxt_xo
In short, a “small group of users, mainly predatory traders”, benefited from pump and rescue schemes, according to Arndxt, author of the newsletter “Fileing on the Edge”. Arndxt says that the same speculation has led to sandwich attacks, where a malicious merchant detects an ongoing transaction on a decentralized exchange, an order before another, and profit from the price manipulation between transactions.
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Part of the reason for which Sol was unable to recover the level of $ 180 is linked to World Liberty Financial, a semi-centralized financing request linked to the personal investment of President Donald Trump. The project would have accumulated positions in Ether (ETH), wrapped Bitcoin (WBTC), Tron (TRX), ChainLink (link), Aave (Aave) and other cryptocurrencies, but none in soil, despite the launch of Trump’s official same (Trump) on the Solana network.
Consequently, for Sol to find its bullish momentum, four key areas of concern must be addressed: Onchain activity, the request for leverage, the Mev robots and the investment of the Trump project.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
