Solana, formerly cherished in the blockchain world, faces numerous hurdles. As a result, Solana price has plummeted significantly, plagued by transaction failure caused by network congestion. Furthermore, the impending Bitcoin halving event injects a feeling of doubt into the cryptocurrency market.
Solana’s high point in 2024, reaching $209.70, appears far off now as the token’s current trading price sits at $133.21, marking a significant weekly drop by 24.38%. This drop in Solana price becomes even more alarming when considering its record peak (all-time high) of $260.06, achieved in November 2031, showcasing a substantial 47.44% decline. However, decline in trading volume shows silver line on the cloud.
In comparison to its top five rivals, Solana’s performance in term of price appears weaker. Over the past week, Bitcoin (BTC) saw a decrease of 10.27%, Ethereum (ETH) dropped by 15.10%, and Binance Coin (BNB) only experienced a slight decline of 5.68%. This volatility has confirmed Solana’s position as the most unstable asset among the top five cryptocurrencies by market value.
Concerns in the market regarding the imminent Bitcoin halving, which halves miner rewards and is anticipated to occur shortly, may be one of the reasons for the overall downturn. This event injects uncertainty into the market, prompting investors to adopt a cautious stance.
However, Solana price drop isn’t solely due to typical market shifts. The network has been grappling with major congestion problems for almost a week, causing transaction failures to soar as high as 75%. This congestion is thought to stem from two main factors: a sudden increase in demand for block space on the Solana blockchain and delays in implementing necessary fixes to tackle network bottlenecks.
The drop in Solana price and its ongoing network troubles cast doubts on its capability to remain competitive in the constantly changing blockchain environment. The next few days will be pivotal for Solana. Will it manage to resolve its network issues and navigate through the impending Bitcoin halving? Only time will reveal whether Solana can rebuild trust among investors and reclaim its previous success.
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