Solana’s Token Growth Slows: Is SOL Price In Danger?
Key Insights
- Solana price gained over 4% and could see a breakout next.
- With the backlash against Pump.Fun, SOL native tokens have been affected.
During the past few weeks, the Solana (SOL) native token saw minimal growth in creation activity. Dune analytics data shows that the blockchain experienced an enormous 88% decline in the creation of distinct native tokens in its network.
At press time, SOL price was trading at $151.20 with an intraday rise of over 5.20%. Its market cap stood at $76.57 Billion and the trading volume soared over 15%, ranked 6th in the overall crypto market.
SOL Price Outlook: What’s Next for SOL?
In February Solana released 330,000 new tokens which corresponded to a modest monthly increase of 0.84%.
The recent statistics reveal a significant decline since Solana issued 2.3 million tokens during January. The Solana network generated more than 2.1 million unique tokens during December of the current year.
Crypto enthusiast Conor Grogan stated through on X that the recorded token creation data showed this as historical all-time-low according to his research.
Conor stated that bots along with fraud schemes generate the majority of new Solana tokens.
He believes Solana’s declining performance stems from retail investors’ understanding that scams have decreased as a result.
According to crypto analyst Miles Deutscher the number of new Solana addresses decreased by 53% since the beginning of the month.
The observed trend made Deutscher believe Solana might be nearing its bottom point according to on-chain measurements.
Pump.Fun Controversy: Are Investors at Risk
The Solana-based memecoin launchpad Pump.Fun experiences numerous difficulties in its operation.
Solana users consider this platform as their leading token creator but the cryptocurrency community now challenges its position.
The company’s former employee performed a bonding curve attack and stole more than $1.9 Million last year.
Pump.Fun moved quickly to deal with the situation after the event affected the holders of SOL tokens.
Unfavorable Launchpad-related content appeared on the internet three months back. The platform released video compilations of aggressive statements and inappropriate content posted by token creators who wished to boost their online presence.
The platform decided to permanently halt all streamings to address the issue. During the discussions about harmful content the launcher managed to increase its revenue significantly.
The financial revenue averaged less than $1 Million daily during February. Many analysts identify the Pump.Fun incident as the primary cause of Solana token value reduction.
Solana Price Analysis: Can Bulls Move Past $150 Mark?
Solana price action on the daily chart indicates that bulls have grabbed strength and was looking to retest the 20 day EMA mark at $160.
US President Donald Trump recently announced SOL and XRP as part of the potential multi-crypto strategic reserve. Despite this update, the market volatility kept Solana below the $250 resistance level.
Technical indicators already show mixed signals, with the Bollinger Bands suggesting heightened volatility. The Relative Strength Index (RSI) line stood at 42 showed a positive crossover and signals a bounce soon.
In case of a break past $160 mark, fresh reversal rally could be seen which may exceed $175 and $182. However, a break below the $140 mark could resume the downtrend and invalidate the bullish thesis.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
