Solana’s value has taken a hit, falling by 12% to $128 over the past week. This decline comes in the wake of a significant sell-off by Pump. fun, a platform known for launching meme coins.
On September 3, Pump. fun sold 10,300 SOL tokens at $134.46 each, amounting to about $1.38 million.
This transaction is part of a larger trend where Pump. fun has liquidated $41.64 million worth of SOL tokens, previously trading at an average of $157.50.
Such large-scale sales by major holders, or “whales,” often impact market prices sharply, contributing to recent instability in Solana’s trading momentum.
The surge of memecoin launches on Pump. fun has also likely contributed to the cooling of Solana’s earlier price gains.
Solana’s performance is closely linked to Bitcoin’s movements, with Bitcoin experiencing an 18% drop over the last quarter and Solana following with a 22% decrease.
This correlation highlights how fluctuations in major cryptocurrencies can affect each other.
Despite these challenges, there are potential positives on the horizon for Solana.
On August 7, Brazil approved its first Solana ETF, a significant milestone that might inspire similar initiatives globally.
Additionally, market experts are cautiously optimistic about the possibility of a U.S. Solana ETF approval by the end of 2024, which could attract substantial institutional investment and boost Solana’s market position.
