Token

Solana

Wrapped Bitcoin

Jito

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/solana-faces-challenges-as-token-demand-declines/" data-wpel-link="internal">Solana Faces Challenges as Token Demand Declines</a><br></p>
<p class="p1" style="text-align: justify">The native token of the <a href="https://en.coin-turk.com/solana-introduces-token-extension-feature-for-developers/" data-wpel-link="internal">Solana</a> network, <strong>SOL,</strong> has not closed above $145 since July 3. This lackluster performance can partly be explained by the decreased interest in <a>cryptocurrencies</a>, which caused the total market value of the sector to drop by 5% in nine days. Despite this, SOL underperformed its competitors with a 7.8% drop between July 3 and July 12, while BNB and Ethereum fell by 6.5% during the same period.</p> 
<h2 class="p1" style="text-align: justify" id="what-is-happening-in-the-solana-ecosystem">What is Happening in the Solana Ecosystem?</h2> 
<p class="p1" style="text-align: justify">Some tokens in the <strong>Solana</strong> ecosystem have significantly underperformed, which also explains the reduced demand for SOL. When participants in the Solana ecosystem lose money, less money circulates in decentralized <a href="https://newslinker.co/category/mobile/" target="_blank" rel="noopener" data-wpel-link="exclude">applications</a>, negatively affecting SOL demand.</p> 
<p class="p1" style="text-align: justify">Notable declines between July 3 and July 12 include a 24% drop in DogWifHat (WIF), an 18% correction in Helium (HNT), and an 18% correction in Jito <strong>(JTO)</strong>. In the grand scheme, SOL remains the fourth-largest cryptocurrency by market value, excluding stablecoins, with a market cap of $65 billion.</p> 
<p class="p1" style="text-align: justify">To put things into perspective, competitors Toncoin (TON) have a market cap of $18.4 billion, Tron $12 billion, and Avalanche $10.1 billion. Moreover, the total value locked (TVL) in Solana matched that of BNB Chain for the first time on July 5, and the gap has remained minimal since then.</p> 
<p class="p1" style="text-align: justify"><img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-370391 size-full" src="https://coin-turk.com/wp-content/uploads/2024/07/defillama-2.webp" alt="" width="1118" height="461"></p> 
<h2 class="p1" style="text-align: justify" id="details-on-the-matter">Details on the Matter</h2> 
<p class="p1" style="text-align: justify">According to <strong>DefiLlama</strong> data, BNB Chain had more than double Solana’s TVL value by the end of 2023. The $2 billion gap in favor of BNB Chain has now disappeared, indicating that <a href="https://finance.coin-turk.com/" data-wpel-link="exclude">investors</a> are allocating significantly more capital to the Solana network. Highlights of Solana include liquid staking Jito with $1.6 billion in deposits, followed by Marinade with $1.1 billion, and Kamino approaching $1.1 billion in TVL.</p> 
<p class="p1" style="text-align: justify">Tron ranks second with a TVL value of $7.6 billion, but 72% of this comes from a single decentralized finance (DeFi) application, JustLend. Analysts have strong concerns given that 94% of its deposits come from a Wrapped Bitcoin version with no solid proof of reserves. Solana is in direct competition with BNB Chain to take the second spot in deposits.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/solana-faces-challenges-as-token-demand-declines/" data-wpel-link="internal">Solana Faces Challenges as Token Demand Declines</a></h5>

Solana Faces Challenges as Token Demand Declines

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