Solana (SOL) Faces Correction After Galvanized 2023-2024 Run

Major digital currency network Solana is experiencing record-low transaction volumes amid a general slump in the broader crypto market.

Solana (CRYPTO: SOL) is seeing record-low transaction volumes amid a broader downturn in the crypto market.

But one X analyst, Mezoteric, raised concerns about the 5th-largest cryptocurrency by market capitalization.

On-chain metrics show SOL transactions are painting a "grim future outlook," according to Mezoteric. Some X users were quick to point out that the cryptocurrency is still seeing strong trading volume, which Mezoteric's original post failed to mention.

Other X commentators highlighted this key concern for the Solana blockchain, including Gem Hunter and Gozde.

Solana Saw A Stellar 2023-2024 After Being Crushed In 2022-2023 Bear Market

Solana had a positive past few quarters overall as it was among the first digital currencies to begin breaking free of the 2022-2023 bear market. SOL, the native digital asset, rose sharply and achieved a 10x growth during this period, which was fueled in particular by the booming meme coin economy.

The emerging joke-centric token economy found Solana to be a suitable answer for their short-term, high-volume token launches. This, in turn, helped spur massive development on the native blockchain, making it the number one choice for developers over even Ethereum, the largest programmable blockchain by valuation.

However, SOL has faced selling pressure from the market of late, and the bearish forces have caused a 10% price decrease from its highs above $200 during the first quarter of 2024. Part of the reason for the coin facing downward price pressure is the meme coin market.

What's Next For Solana?

Solana's future is looking increasingly concerning amid a major slowing down of the larger crypto market. Conditions are expected to improve in the last quarter of 2024 as the market mood will improve due to the widely predicted resumption of the 2024-2025 bull market.

At one point, a potential SOL ETF approval was expected from the US Securities and Exchange Commission (SEC), but the regulator even halted that. If a spot ETF is approved, it could mean a major boost for the under-pressure decentralized network.

Solana needs to differentiate itself in the crowded crypto market to maintain its position as one of the top cryptocurrencies by market capitalization. Tron (CRYPTO: TRX) continues to make inroads into the meme coin market as the latter seeks a pivot to keep things interesting. It can give SOL major competition heading into the incoming bull market.

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