The price of Solana has dropped 21% in only one week, yet on-chain and derivatives statistics show that investors still have faith in the network’s ability to get over its current obstacles. The price of Solana’s native token, SOL, which is now trading at $139, dropped sharply during the last week—by 21%—to its lowest level in over six weeks. Since April 11, a significant $113 million worth of leveraged long SOL futures contracts have been liquidated, indicating that investors may have been too sanguine after SOL’s 61% price increase in March.
This begs the issue of whether the $130 support level will remain strong, as well as the possibility of more corrections.
Growth Of The Solana Ecosystem And Coinbase Integration
Analysts in the market note that Solana’s $60 billion market valuation today looks excessive, especially because Avalanche’s AVAX tickers are down $34.86 and $13 billion and Tron’s TRX tickers are down $0.1088 and $10 billion, respectively—four and six times higher. Some counter that the quick growth of SOL’s ecosystem—many projects are establishing their tokens—justifies the premium.
Coinbase stated on April 16 that over 50,000 SOL SPL tokens are supported by its wallet, which is now fully integrated with the SOL decentralized exchange (DEX) ecosystem. By enabling users to enter the contract address directly into the “swap flow,” this integration streamlines the trading process and lowers the barrier to entry into Solana’s ecosystem.
