Solana [SOL]The fall of has come as a surprise to investors around the world since blockchain was hyped to the point where it ended up becoming the fifth largest cryptocurrency in the world at one point.
However, the token failed to live up to its hype and investor interest began to wane. The current state of the altcoin is not impressive – it is on the verge of dropping out of the cohort of top players.
Solana, after hitting the all-time high of $267, began to depreciate and within seven months lost over 85% of its value to trade at $37.74.
Last year, before the start of the 1033% rally, SOL had been stuck around this zone for almost four months since April 2021. At press time, not only has the altcoin returned to the same level, but the token actually continues to decline and could even end up losing its rank.
With a market capitalization of $13 billion, the altcoin is the ninth largest crypto, followed by Dogecoin in tenth with a market capitalization of $10 billion and Polkadot in eleventh with $9 billion.
While these tokens are not yet an immediate threat to Solana, their growth is outpacing Solana’s, which could accelerate the asset’s fall even further.
The active downtrend, while not gaining strength, is holding far from the 25.0 threshold, and if it loses strength, SOL could suffer many unprecedented losses.
Moreover, the inflows to the asset are quite low. Thus, indicating that investors haven’t exactly leaned towards that.
But it’s not just the spot market where Solana is beaten, its NFT market hasn’t been exceptional either.
In the month of May alone, Solana’s largest marketplace, Magic Eden, noted a sharp drop in the total volume of transactions conducted on the marketplace.
Rising from $77 million to $15 million, Solana-based NFTs did not attract many investors, but at the same time, the token is proving to be significantly outperforming its competitors on OpenSea.
Although the volume of transactions is lower on Magic Eden, the total number of users and the total number of transactions exceed that of OpenSea.
OpenSea managed to report a total trading volume of $16 million, with only 21,000 users performing 40,000 trades. Magic Eden followed suit, with over 50,000 users responsible for the 436,000 transactions in the market.
Now, although the token is set to lose its ninth position on the crypto charts, it remains undefeated with massive support in the NFT market.