The cryptocurrency market is witnessing a dramatic shift, with Solana (SOL) experiencing a significant downturn. Meanwhile, Max Keiser believes that the Solana rug pull has begun.
After reaching a high of $126.30 on December 25, SOL’s value plunged by 33% within two weeks, igniting discussions and concern among investors and industry experts alike.
The Solana Ecosystem Booms
The price decline follows a period of vigorous activity within the Solana ecosystem, sparked by the introduction of the Jito (JTO) token and the launch of the BONK meme coin.
JTO, listed on major exchanges on December 7, 2023, rapidly attained a market capitalization exceeding $300 million. Meanwhile, BONK led to the complete sell-out of Solana’s Saga phone, primarily due to specific airdrops targeting mobile device holders.
The blockchain’s rapid transactions, low fees, and a plethora of meme coin issuances fueled interest in the network, driving SOL token prices to nearly $127 from $38 at the beginning of November. The value locked in Solana applications also grew significantly, reaching $1.53 billion from $400 million in November.
Read more: How to Buy Solana (SOL) and Everything You Need To Know
Solana also overtook Ethereum regarding trading volumes and network fees on a seven-day rolling basis, highlighting its potential.
Network Activity Slows Down
However, the latter part of December saw a shift in investor sentiment, with profit-taking and a lack of momentum in new launches. Capital began moving to opportunities on other blockchains, leading to a notable decline in Solana’s market presence.
The initial frenzy for meme coins on the Solana network also waned. Tokens like JTO, BONK, and Dogwifhat, which had seen meteoric rises in their values, are now experiencing substantial drops.
JTO has dropped by more than 70% after skyrocketing by 3,200%. On the other hand, BONK, which surged over 1,000% in three months, is down over 73% from its December peak. Meanwhile, WIF has fallen nearly 80% after initially offering early holders a return of more than 10,000% on their investment.
These tokens, JTO and BONK, continue to struggle even after the recent news of OKX listing them on its perpetual futures market, enabling trading with up to 50x leverage.
Other lesser-known tokens, such as POPCAT and CHIPI, are also struggling, with declines of more than 90% from their all-time highs.
SOL Price to Drop to $70
Amid these developments, the Host of The Keiser Report on RT, Max Keiser, revisited his earlier views on Solana, stating, “The rug pull has begun.”
Read more: What Is a Rug Pull? A Guide to the Web3 Scam
This sentiment was echoed by Pentoshi, a pseudonymous technical analyst, who anticipates a potential decline in the price of Solana, suggesting an opportunity to bid in the $70 range in the future.
“Not sure we get as low as I have here, but do expect at some point to be able to bid in the $70’s. Looking forward to not just trading sol, but holding some eco-system coins for the next year or so,” Pentoshi said.