As the majority of assets in the cryptocurrency sector commence to reverse the exceptionally bullish gains from prior weeks, some are correcting more swiftly and more intensely than others, including Solana (SOL), which has shed over $3 billion from its market cap in a solitary day.
On the other hand, Solana’s market cap has dwindled by over 6% in the last 24 hours, having descended from $48.58 billion to $45.54 billion during this period, signifying a depletion of $3.04 billion to its market value, as per data acquired from the crypto analytics platform CoinMarketCap on February 21.
Solana price is dipping
In the interim, the valuation of Solana has dipped 6.07% in the past 24 hours, accumulating to the loss of 10.78% across the last seven days, but nevertheless still adhering to the 16.94% total gain amassed over the antecedent month, and at the writing time is exchanging at $103.41.
Why is Solana declining?
Notably, the bearish streak aligns with the general alteration in sentiment across the broader crypto market, which appears to possess sufficient impact to counterbalance the affirmative developments for Solana, encompassing its decentralized finance (DeFi) ecosystem exceeding $2 billion for the first time since June 2022.
Indeed, the total value locked in DeFi projects on the Solana network briefly transcended the $2 billion threshold on February 20, with the current value staked on it standing at $1.95 billion, in accordance with the most recent information retrieved from the DeFi analytics platform DefiLlama on February 21.
On top of that, the layer 1 blockchain has declared integration with the decentralized file storage network Filecoin (FIL) to host Solana’s block history in the future, enabling the ecosystem and Solana-based projects to shift away from centralized data storage solutions.
🔥🔥🔥
I am really excited to see this launch. Huge thanks to @Filecoin for building an awesome decentralized archive layer.
And to @triton_one, who did a ton of work to ship this!
— toly 🇺🇸 (@aeyakovenko) February 17, 2024
Subsequent to the news, the value of Filecoin promptly started to rally and has surged 24% since the announcement, amassing to the gain of 32.77% on its weekly chart. Nonetheless, Solana has failed to replicate this surge and jeopardizes descending further as its relative strength index (RSI) dips below 50. The current market cap of SOL is $46.32B at the time of writing.
Hackers are coming up with more ways to steal crypto
The Solana ecosystem is becoming a popular target for crypto scammers. At the beginning of January, Bloclaid analysts spoke about the online community of one popular wallet drainer. It has more than 6 thousand active participants.
Earlier, malware for draining wallets was discovered by Kaspersky Lab specialists. A new pirated program created for the macOS system helps attackers gain access to the user’s computer password.
