Solayer Token Drops Over 55% Following Token Unlocks
Solayer's recent token unlocks led to significant volatility. Key points include:
- $LAYER experienced a decline of over 55% within 48 hours, losing more than $350 million in market cap.
- Speculation arose regarding coordinated sell-offs from wallets linked to the Solayer team, with claims that only 3.6% of total supply was distributed during the Genesis Drop.
- The market structure relied on thin float and heavy lockups contributed to the sharp sell-off.
- Despite Solayer's issues, the Solana ecosystem showed resilience, with increased DEX volumes and stablecoin supply reaching an all-time high of $12.6 billion.
- Solana (SOL) outperformed both ETH and BTC in April, indicating strong fundamentals in the broader ecosystem.
The situation highlights the risks associated with tokens driven by narrative rather than fundamentals.