Solana Falls Below $100 as Trading in Meme Coins Reverses

Earlier today, Solana (SOL) was trading for less than $100 per coin after suffering a setback.

The asset, which earlier this week briefly surpassed Binance's BNB, is no longer ranked as the fourth-largest cryptocurrency by market capitalization, according to statistics from CoinGecko. According to CoinGecko, the price of SOL is currently just under $100, a 7% decrease in a day.

Nevertheless, during the last week, the competitor to Ethereum has gained about 15%, and in the last month, it has increased by 78%. Since November, SOL has been the best-performing cryptocurrency because to renewed investor interest. Following FTX founder Sam Bankman-Fried's trial last month, some market experts predicted the coin, which is based on the cutting-edge open-source blockchain used by developers to create apps, would suffer. He made significant investments in the protocol through his illicitly operated digital asset exchange.

Nevertheless, investors poured money into it after realizing the benefits of the blockchain and its native currency. This, together with a short squeeze—a situation in which investors who have bet on an asset's price are compelled to purchase it in order to offset their losses—caused the price of SOL to sharply increase.

In three months, SOL has increased by 395 percent.

The decline in SOL's value has correlated with losses in other cryptocurrencies that are based on its blockchain. The craze surrounding the meme coin Bonk (BONK) has likewise subsided. The price of the asset with a dog motif spiked early this month, but it appears that investors are shifting their focus elsewhere. The token has plummeted more than 26% over the last week and is currently down 9% in only one day. In just two weeks, BONK's market capitalization has dropped significantly, moving from the 69th to the 90th position among the largest digital assets. Instead, investors are now placing more money in Dogwifhat (WIF). The coin, which also uses Solana, is currently trading at $0.149830 and is up 9%.