SOL corrected alongside the wider crypto market sell-off, but data points to more concerning reasons for the price drop.
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Solana’s native token, SOL 
SOL
$95

, experienced a 9% decline on Jan. 18, reaching a $91.40 low. The continuous rejection from the $100 level has persisted over the past 15 days. However, this should not be of extreme concern, considering that the total cryptocurrency market capitalization has been unable to sustain levels above $1.6 trillion throughout 2024. Despite the recent setback, SOL recorded an impressive 84% gain in December, causing investors to express concerns about the lack of positive price momentum.FOMO for Solana SPL token listings and airdrops fades

The FOMO (fear of missing out) driving SOL’s rally in December 2023 was triggered by the pump of Solana SPL token airdrops, which included Jito (JTO), BONK and Dogwifhat (WIF). This movement stimulated demand for the Solana Saga Phone, as some projects targeted exclusive offers for these users. However, the tide appears to have turned, as BONK faced a 15% correction between Jan. 17 and Jan. 18, while JTO declined by 19% in the same period.
Another factor contributing to SOL’s recent correction was the excessive optimism caused by airdrop expectations. Some launches took longer than anticipated, while others provided only a temporary, short-term boost to its decentralized applications (DApps), fading after the respective airdrop snapshots. Analysts and influencers created lists of the most promising opportunities, but almost none of the tokens reached decent valuations and volumes.
In a post on the X social network dated Dec. 12, 2023, IcedKnife mentioned some of the expected Solana ecosystem launches, including Kamino, Drift, Tensor, Jupiter, Parcl, Marginfi and many others.

gentle reminder to farm all these protocols

Drift
Kamino
Tensor
Wormhole
Jupiter (second wave)
marginfi
parcl
Mayan
meteora
Cega
zeta
Phantom
Birdeye
Backpack
Cube
— Iced (@IcedKnife) December 12, 2023

A significant source of optimism for SOL’s token performance stems from the growth in deposits within the Solana Network’s decentralized finance (DeFi) industry.
Solana network’s total value locked, SOL. Source: DefiLlama
The total value locked (TVL), measured in SOL tokens, reached a peak of 15.4 million on Dec. 19, 2023, indicating a 60% growth compared to the previous month. However, it has since stabilized near 14 million. In addition to the TVL growth in Jito and Marinade Finance liquid staking solutions, Kamino, Orca and Solend DeFi applications also managed to exceed $150 million in deposits each.

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Furthermore, there has been undeniable growth in the activity of the Solana network in terms of transactions and volumes, although its numbers still lag behind competitors such as BNB Smart Chain and Polygon.
Top blockchains by DApps volume last 7 days. Source: DappRadar
Note that Solana witnessed an 8.5% decline in transactions and the number of active DApps users in the last seven days. However, Solana’s DApps volume in the period, totaling $594 million, is significantly smaller compared to BNB Smart Chain’s $6 billion or Polygon’s $1.6 billion. On the positive side, Solana leads with an absolute number of transactions at 72.3 million, which can be partially attributed to its lower costs.

Solana’s network robustness paves the way for a SOL price recovery

Solana’s heavy reliance on heavy-processing validation has attracted substantial criticism for the project. Nonetheless, it has simultaneously presented a unique opportunity for DApps requiring extensive bandwidth, such as token launches, nonfungible token (NFT) collections, games and social networks. As an example, the Solana network became the third-largest network in NFT marketplace volumes, according to CryptoSlam.
NFT marketplace 30-day volumes, USD. Source: CryptoSlam
NFT volumes on Solana reached $270.5 million, trailing Ethereum by a mere 20%, with Ethereum dominating in terms of the most valued collection. Notable among Solana’s most traded NFTs are Saga Monkes, Froganas, Mad Lads and Tensorians.
Solana’s network activity does not indicate a risk of a sharp SOL price correction, considering its resilience in terms of DApps volumes and TVL. However, there is negative pressure on SOL token demand following excessive expectations related to airdrops and SPL token performances.
SOL’s market capitalization stands at $40.6 billion with a price of $94, remaining 50% lower than its peak in November 2021.
Consequently, there is potential for an upside if the network continues to attract interest from projects that value its stability in the face of excessive network processing demand. This is especially significant as most competitors have experienced surges in transaction fees or prolonged instability.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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Thrash metal band Megadeth community likens Web3 to ‘virtual mosh pit’ — in all the right ways

Speaking with three members of the Megadeth Digital team, Cointelegraph learned how the group, which pioneered the first band website in the mid-90s, is now leading the metal community into Web3.
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Over the last year, artists, musicians and creators have been continuing to embrace the new tools of the Web3 space to connect with their communities and have more autonomy over their work. 
From Justin Bieber’s 2015 hit track “Company” becoming a nonfungible token (NFT) for fan royalty-sharing to Michael Jackson’s long-lost demo version of his song “Big Boy” released on the blockchain as digital vinyl.
Another big moment came at the end of the year when the American thrash metal band Megadeth launched a new NFT collection, aiming to strengthen its community in both physical and digital reality.
Megadeth is known as one of the “Big Four” American thrash metal bands, alongside Metallica, Anthrax and Slayer. The group has millions of fans and followers across the globe, including its online community. 
Cointelegraph spoke with members of the Megadeth Digital team — Isabel Caballero, Jillian Valentin and Alex Viruet — who have been working to take the community into the Web3 space. According to Valentin, the “driving force” behind the band’s entry into Web3 is its frontman, Dave Mustaine:

“He’s always up with the times and just wants to make sure that he solidifies every part of wherever history unfolds. He did that first by having a website at the beginning of the internet age when everyone was going against it.”

As Valentin mentioned, to promote one of its forthcoming albums in the mid-90s, Megadeth created an official website — something no other band had done at the time.
The idea for the website was to be “a virtual town in cyberspace called Megadeth Arizona, where fans could gather in an online community and chat with each other, as well as find out information about Megadeth, including news about their upcoming album, listen to samples of the record and get info on their tour dates.”
Original image from Megadeth’s first website. Source: Internet Archive
This idea behind the website parallels the vision of many in the Web3 space, but now with new tools to enhance those capabilities.
Related: Champ Medici talks Web3 communities, NFTs, music and gaming
Caballero said, “Dave always wanted to incorporate the digital aspect of life into his fans. […] If he learns about something he thinks that his fans will benefit from, he wants to take it and run with it.”

“The biggest thing here for us is building the ultimate community that can last a lifetime, beyond the lifespan of the band, to make [fans] feel like they’re a part of something way bigger than just a fan club — like they have their own family.”

All three said their Web3 initiatives have been successful in converting fans of previous generations who “didn’t even know what a wallet is” to engage with Web3. Valentin said it has been “incredible to see.”
The Megadeth Digital team said they’ve seen fans come together in online spaces give back and help each other.

“We have people coming in donating ETH, donating NFTs, teaching one another how to be a part of this, and that’s exactly what we want.”

Caballero continued by likening the space to a mosh pit.
“We always bring up the virtual mosh pit,” she said. “I don’t know if you’ve ever actually seen a mosh pit, but it looks really aggressive and intense. It’s a rager and a lot to take in. But if something happens, someone’s right there to pick you up, to stop and to hold your hand, to escort you out of it, or get you back rolling and make sure you're okay.”
She said that is exactly the perspective of both the team and the entire community as they entire this new era of digital spaces with Web3.

“We’re going to be there with you in the middle of the chaos. We’re going to educate you, we’re going to do the thing. But if you fall on the way, you’re confused, we’re going to hold your hand, we’re gonna pick you up, and we’re going to do it together.”

The team said the new collection, which dropped at the end of December, was still just the beginning of what they have planned to bring the metal community into the future.
Magazine: Doctor Who materializes in Web3: Tony Pearce’s journey in time and space