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- Solana (SOL) experienced an 11% decline over the past week.
- SOL’s social media mentions fell by 50.7% in the last week.
- The Solana Foundation asserts that SOL is not a ‘security’ as claimed by the SEC.
On Monday, Solana (SOL) was included in the SEC’s classification of cryptocurrencies deemed as ‘securities.’ Following this development, the SOL market has entered a phase of significant volatility.
In a firm response, the Solana Foundation communicated to CoinDesk that SOL, the native token of the Solana network, should not be classified as a security. The developers remain unfazed by the SEC’s claims. However, the consequences are evident in SOL’s downward trend, which has seen an 11% drop in the past week.
Solana (SOL) 7-day Price Chart (Source: CoinMarketCap)
TradingView data indicates a bearish trend for SOL, with the asset nearing the oversold territory. Additionally, the current price dynamics do not suggest any potential for a trend reversal, nor is there a reduction in the selling pressure surrounding the asset.
No Indications of Recovery for Solana (SOL)?
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The SEC’s legal actions against Binance and Coinbase have led to a significant decline in SOL’s price since Monday. Furthermore, decreases in Solana’s total value locked (TVL) and daily revenue have also been noted.
Solana TVL & Daily Revenue (Source: DeFiLlama)
Initially, the TVL fell by 4%, dropping from $282.51 million on June 5 to $270.15 million at the time of reporting. Additionally, daily revenue decreased by 15.8% over three days, from $21.02K on June 5 to $17.68K on Thursday. According to Messari data, Solana generated $4 million in Q1 2023.
Data from LunarCrush, a social intelligence platform for cryptocurrencies, reveals that Solana (SOL) has also faced negative trends on social media. In the past week, mentions of SOL on Crypto Twitter decreased by 50.6%, while news mentions dropped by 2.7%.
Overall, this bearish scenario appears discouraging for SOL traders. Conversely, the L1 blockchain Solana is showcasing a more optimistic outlook for Q2 2023, as it continues to enhance the crypto and web3 ecosystem. To start, the protocol has implemented state compression, facilitating the minting of high-volume NFTs on Solana. Notably, the Solana-native Mad Lads has emerged as one of the most talked-about NFT projects.
The launch of its Web3 mobile device, Saga, has also garnered attention. Additionally, the network has excelled in liquid staking through its native Marinade Finance protocol. Increased developer activity reflects the commitment of Solana’s developers to maintain the PoS blockchain in light of the SEC’s allegations.
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