beincrypto.com
The cryptocurrency market is witnessing a dramatic shift, with Solana ($SOL) experiencing a significant downturn. Meanwhile, Max Keiser believes that the Solana rug pull has begun.
After reaching a high of $126.30 on December 25, $SOL’s value plunged by 33% within two weeks, igniting discussions and concern among investors and industry experts alike.
The Solana Ecosystem Booms
The price decline follows a period of vigorous activity within the Solana ecosystem, sparked by the introduction of the Jito ($JTO) token and the launch of the $BONK meme coin.
$JTO, listed on major exchanges on December 7, 2023, rapidly attained a market capitalization exceeding $300 million. Meanwhile, $BONK led to the complete sell-out of Solana’s Saga phone, primarily due to specific airdrops targeting mobile device holders.
The blockchain’s rapid transactions, low fees, and a plethora of meme coin issuances fueled interest in the network, driving $SOL token prices to nearly $127 from $38 at the beginning of November. The value locked in Solana applications also grew significantly, reaching $1.53 billion from $400 million in November.
Read more: How to Buy Solana ($SOL) and Everything You Need To Know
Solana also overtook Ethereum regarding trading volumes and network fees on a seven-day rolling basis, highlighting its potential.
Network Activity Slows Down
However, the latter part of December saw a shift in investor sentiment, with profit-taking and a lack of momentum in new launches. Capital began moving to opportunities on other blockchains, leading to a notable decline in Solana’s market presence.
The initial frenzy for meme coins on the Solana network also waned. Tokens like $JTO, $BONK, and Dogwifhat, which had seen meteoric rises in their values, are now experiencing substantial drops.
$JTO has dropped by more than 70% after skyrocketing by 3,200%. On the other hand, $BONK, which surged over 1,000% in three months, is down over 73% from its December peak. Meanwhile, $WIF has fallen nearly 80% after initially offering early holders a return of more than 10,000% on their investment.
These tokens, $JTO and $BONK, continue to struggle even after the recent news of OKX listing them on its perpetual futures market, enabling trading with up to 50x leverage.
Other lesser-known tokens, such as POPCAT and CHIPI, are also struggling, with declines of more than 90% from their all-time highs.
$SOL Price to Drop to $70
Amid these developments, the Host of The Keiser Report on RT, Max Keiser, revisited his earlier views on Solana, stating, “The rug pull has begun.”
Read more: What Is a Rug Pull? A Guide to the Web3 Scam
This sentiment was echoed by Pentoshi, a pseudonymous technical analyst, who anticipates a potential decline in the price of Solana, suggesting an opportunity to bid in the $70 range in the future.
“Not sure we get as low as I have here, but do expect at some point to be able to bid in the $70’s. Looking forward to not just trading sol, but holding some eco-system coins for the next year or so,” Pentoshi said.