Solana’s native token, SOL, has seen a significant drop in value only days following an encouraging collaboration announcement with Visa.
The biggest Ethereum rival is now trading at $18.40, down 5.5% vs Bitcoin, and has a market worth of $7.56 billion with a $338 million 24-hour trading volume.
Despite initial increases following Visa’s decision to use the Solana blockchain for USDC stablecoin transaction settlement, this sharp decline has occurred.
Visa’s crypto ambitions fail to sustain SOL’s momentum
Earlier this week, Visa announced its newest foray into the cryptocurrency world. To enable quicker payments in USDC, a popular stablecoin, Visa selected the Solana blockchain technology.
The leader in global payments announced intentions to assist merchants in moving millions of USDC transactions. This information initially caused SOL’s stock price to increase by 4%.
The agreement was viewed as a resounding endorsement of Solana as a genuine Ethereum substitute, praised in particular for its quick and affordable transactions.
Bearish clouds over altcoin horizons
The cryptocurrency market as a whole is also seeing a downturn, thus the fall is not exclusive to Solana.
Data from CoinGecko shows that although major players like Bitcoin and Ethereum have remained largely unchanged, smaller notable altcoins like Cardano and Dogecoin have had weekly drops of 2.3% and 2.4%, respectively.
According to CoinGecko statistics, Litecoin and the meme currency Shiba Inu have similarly declined 4.4% and 5% during the last day.
SOL’s poor performance against the major cryptocurrencies, despite the Visa hoopla, is quite damaging for the biggest Ethereum opponent.
