The crypto market is still in a bearish phase and Solana (SOL) is not left behind to bear the brunt, again its ecosystem factors are worsening the situation.
Since last week, SOL has been seen performing less than satisfactory, being in the under $ 60 zone.
At the time of writing this article, SOL is trading at $ 51.20 with a decline of over 25% from the $ 68.64 level on May 11 and a decline of 0.59% in 24 hours.
At the same time, SOL also lost its shine with an 80% drop in price from an all -time high (ATH), $ 260 recorded on Nov. 6th.
What exactly has happened?
Solana is often faced with network disruptions; the latest incident took place on April 30 and it took a period of time for 7 hours.
It is understood the disruption stemmed from a boat that produced a dumping of transactions on the NFT platform in Solana, Metaplex.
In addition, Solana’s total lock -in value (TVL) has recorded a sharp decline since November 9th.
At the time, TVL recorded was ATH - $ 15 billion. But today it’s only worth $ 4.24 billion, proving Solana has lost nearly $ 11 billion to TVL.
Based on observations, the number of users interacting with Solana’s top 10 apps has decreased except for (#10) Gameta - user interaction increased by almost 64% in 24 hours; bad for (#5) OpenSea as its usage dropped by up to 35%.
Solana futures open interest also fell 22% since last month to the current level of $ 554 million.
For now, Solana Labs is working to restore the performance of this network but investors are asked not to place high expectations as Solana’s status is still under pressure.
