Solana’s Market Share Drops as SOL Price Hits August Lows
Solana's SOL has declined to its August lows around $156. This drop follows a decrease in Solana's network dominance as traders shift to high-activity chains like Hyperliquid and BNB Chain.
- Solana's share in the Layer-1 transaction fee market fell from over 50% at the start of the year to 9%.
- Hyperliquid now commands 40%, and BNB Chain holds 20%, driven by derivatives trading and DeFi activity.
Key Developments
- Despite challenges, Solana celebrated milestones such as the launch of Solana Staking ETF (BSOL) on NYSE and Grayscale’s GSOL trust, with $284 million in ETF inflows.
- Visa and Shopify are integrating Solana's payment infrastructure, and Western Union plans to build stablecoin remittance rails exclusively on Solana.
However, these achievements have not prevented SOL's price decline, which dropped 32% in the last 30 days, placing it 6th by market cap at $86.57 billion.
- Forward Industries, Inc., holding 6.82 million SOL purchased at an average price of $232, faces a 24.13% unrealized loss of $382 million.
- The company's shares plunged 73.6% from their peak, resulting in a market cap below its SOL holdings value.
SOL Price Analysis
SOL is testing a critical support zone between $155 and $160, breaking below key technical levels with bearish momentum indicators.
- The RSI is near oversold territory at 30.25, and MACD remains bearish.
- A recovery requires a close above the $185-$190 zone; failure could lead prices towards $140-$130.
