Solana (SOL) bears are back in action following a great December, as the cryptocurrency is seeing an unbelievable decline in its attempt to make another significant historic month. As of this writing, Solana is trading for $105.95, a decrease of 5.53% over the previous day. The digital currency has faced decreasing purchasing activity, as indicated by the present forecast, with trading volume down more than 22% to $4,362,297,095.
Solana’s 2023 has been incredibly prosperous. The cryptocurrency began the year around $8.14, and following a range-bound period from January to about mid-October, it began its ascent to prominence. Solana is now regarded as the most successful cryptocurrency among the top 20 rated by market capitalization, by a significant margin.
Even if Solana’s valuation is currently declining every day, it has increased by more than 956% over the last year. This remarkable figure is in contrast to the record-breaking 159% for Bitcoin (BTC). Although the rate of decline is alarming, it is unclear what exactly set off this sell-off, but given the market’s over 92% gain over the previous month, it is not surprising that traders are cashing in as the New Year draws near.
Solana ecosystem taking breather
Solana reversed Ethereum (ETH) in several aspects, including non-fungible token (NFT) performance and DEX trading volume growth, even as it continued on its positive trajectory throughout the previous month.
Furthermore, when the larger blockchain cooled off its gains, the related Solana-based meme currencies that had parabolic price jumps are now also taking a break. Even though the year is not yet finished, there is a good probability that Solana and the innovations that go along with it will rebound given its history of price declines.
