After a multi-week rally, Solana faces a correction while developers scramble to patch a zero-day vulnerability that could have been catastrophic.
After a multi-week rally, Solana faces a correction while developers scramble to patch a zero-day vulnerability that could have been catastrophic. This comes as Solana's open interest charged toward a new all-time high.
Market Overview
The crypto market—Solana included—took yet another Trump thump to the chest this week, with most top 100 assets experiencing double-digit losses. Bitcoin weathered the storm relatively well, dipping just under 1% to $94,142, while XRP suffered a more substantial 9% decline.
Solana's ecosystem took a sizable knock, with the market cap and volume sliding 5% and 21% respectively, even as founders, builders, and supporters gathered at Solana Crossroads in Istanbul, Turkey. Despite this correction, open interest for Solana derivatives charged toward a new all-time high, suggesting traders are positioning for future price action.
Solana's Performance
Solana dropped 5% to $144, but it still performed better than some altcoins that plummeted significantly. It could have been worse, but the network's devs fixed a zero-day vulnerability that could have resulted in hackers minting unlimited tokens.
Better yet, Solana’s lending platforms issued nearly $830 million in loans in 30 days.
L1 Ranking Update
The layer-1 blockchain hierarchy remains largely unchanged this week. Solana's total value locked (TVL) slumped 2.79%, with Bitcoin suffering a nearly 4% loss. Despite the modest loss, Solana held on to its second place, with Ethereum still calling the shots.
Solana's DEX volume slumped 10% to $19.1 billion. Will the network get a lifeline as multi-chain DEX aggregator 1inch activates support for Solana? The daily active addresses stayed the same at 3.8 million.
Biggest Winners & Losers
Top Performers
While most of Solana's ecosystem tokens saw red, a few managed to swim against the current:
- Virtual Protocol (VIRTUAL): +11% (continuing last week's upward trend)
- Turbo (TURBO): +14%
- FTX Token (FTT): +8%
Biggest Losers
Most Solana tokens retreated, with meme coins taking the brunt of the damage:
- Solayer (LAYER): -38% (ending its impressive winning streak)
- Official Melania Meme (MELANIA): -26%
- Official Trump (TRUMP): -24%
- Raydium (RAY): -22%
- Bonk (BONK): -18%
Latest Solana News
DeFi Development Corp Acquires Solana Validator for $3.5M
DeFi Development Corporation is acquiring a Solana validator business for $3.5 million, funded through a mix of restricted stock and cash. The deal enables DeFi to self-stake its SOL holdings and capture staking rewards, expanding its footprint in the Solana ecosystem.
Project Open Aims To Put Stocks on Blockchain
The Solana Policy Institute, alongside Orca Creative, Superstate Inc., and Lowenstein Sandler LLP, has submitted a proposal to the U.S. SEC that could put stocks on blockchains such as Solana. The initiative is called Project Open.
SolFlare Unveils Debit Card at Crossroads in Turkey
Popular wallet SolFlare launched its self-custodial debit card last week at Solana Crossroads in Istanbul, Turkey. Unlike many crypto debit cards, the SolFlare card ensures that users never give up ownership of their assets.
What You Can Do Now
- Monitor institutional movements as companies like DeFi Development Corp increase their stakes in the Solana ecosystem.
- Keep an eye on regulatory developments surrounding Project Open, which could revolutionize stock trading on Solana's blockchain.
- Stay liquid and adaptable as market volatility returns—don't get too attached to your positions.
- Track Solana's DEX volume as the 1inch integration rolls out, potentially bringing new liquidity to the ecosystem.
Stay informed, stay cautious, and, as always, don't invest what you can't afford to lose.
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