Token

Solana

Wrapped Bitcoin

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/solana-faces-token-demand-decline" data-wpel-link="internal" rel="noopener noreferrer nofollow">Solana Faces Token Demand Decline</a><br></p>
<p style="text-align: justify"><a href="https://en.bitcoinhaber.net/bitcoin-climbs-above-70000-as-altcoins-rally-solanas-outlook-amid-outflows" data-wpel-link="internal" rel="noopener noreferrer nofollow">Solana</a>‘s native token, SOL, has struggled to maintain its performance, failing to close above $145 since July 3. This decline can be attributed to a broader drop in cryptocurrency interest, which led to a 5% reduction in the <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">market</a>‘s total value over nine days. Despite this, SOL’s 7.8% drop within this period outpaced declines seen in its competitors, BNB and Ethereum, which fell by 6.5%.</p>
<h2 id="what-is-happening-in-the-solana-ecosystem">What is Happening in the Solana Ecosystem?</h2>
<p style="text-align: justify">Several tokens within the Solana ecosystem have underperformed significantly, contributing to the reduced demand for SOL. Losses in Solana’s ecosystem result in decreased liquidity for decentralized <a href="https://newslinker.co/category/mobile/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">applications</a>, further impacting SOL’s demand. Between July 3 and July 12, notable declines were observed in DogWifHat (WIF) with a 24% drop, and Helium (HNT) and Jito (JTO) both corrected by 18%.</p>
<p style="text-align: justify">Despite these losses, SOL maintains its position as the fourth-largest cryptocurrency by market value, excluding stablecoins, with a market cap of $65 billion. In comparison, competitors such as Toncoin (TON), Tron, and Avalanche have market caps of $18.4 billion, $12 billion, and $10.1 billion, respectively. Additionally, the total value locked (TVL) in Solana has closely matched that of BNB Chain since early July.</p>
<h2 id="details-on-the-matter">Details on the Matter</h2>
<p style="text-align: justify">Data from DefiLlama reveals that BNB Chain’s TVL was more than double that of Solana by the end of 2023. However, the $2 billion gap has since disappeared, suggesting increased capital allocation to Solana. Highlights within Solana include liquid staking Jito with $1.6 billion in deposits, followed by Marinade and Kamino, each nearing $1.1 billion in TVL.</p>
<p style="text-align: justify">Tron ranks second in TVL with $7.6 billion, although 72% of this is attributed to JustLend, a single DeFi application. Analysts express concerns over JustLend, noting that 94% of its deposits stem from a Wrapped Bitcoin version lacking solid proof of reserves. Solana remains in direct competition with BNB Chain for the second position in TVL.</p>
<h2 id="key-insights">Key Insights</h2>
<ul>
 <li>Solana’s ecosystem performance directly impacts SOL’s demand.</li>
 <li>Increased capital allocation to Solana is evident despite initial TVL disparities.</li>
 <li>Concerns persist regarding the reliability of some DeFi applications within competing ecosystems.</li>
</ul>
<p style="text-align: justify">In summary, Solana faces challenges as reduced token demand continues to impact its overall performance. The ecosystem’s ability to draw more capital and improve liquidity will be crucial for SOL’s recovery and future growth.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/solana-faces-token-demand-decline" data-wpel-link="internal" rel="noopener noreferrer nofollow">Solana Faces Token Demand Decline</a></h5>

Solana Faces Token Demand Decline

Table of Contents

BH NEWS

Other articles published on Jul 13, 2024

Jupiter Back In The Green As Investors Reach For The Stars, Analysts Believe This Presale Gem Cou...

Bitcoin Price Rises and Market Trends Shift

New on App Store: BlockDAG’s X1 App for Daily Mining of 20 BDAG Coins, Plus TRON Price Analysis &...

Is Bitcoin Cash (BCH) Heading For A Bull Run To $700 Mark

Best Crypto Coins to Watch for Future Gains in July:Bitgert, Dogwifhat, NEAR Protocol, Dogecoin, ...

Litecoin Whale Activity Surges with $2.85B Daily Transactions

Join our free newsletter for daily crypto updates!