Solana’s native token SOL dropped under $100 due to reduced demand for the network’s DApps and negative SPL token performances.
Solana's native token SOL (SOL) experienced a 22% plunge in just eleven days after reaching $126.30 on Dec. 25, 2023. Some analysts may argue that the bullish momentum persists, as its current price of $98.40 represents a 61% gain from the previous month. However, crypto traders tend to shift their portfolios swiftly when better opportunities arise. Investors are now questioning whether Solana's network activity confirms the deteriorating sentiment toward SOL's token price.
Some analysts attribute SOL's rally to the airdrop frenzy that swept through the network after the newly launched JITO token was listed on major centralized exchanges on Dec. 7, 2023, achieving a market capitalization of over $300 million within the first few hours of trading. This success was followed by the BONK memecoin on Dec. 14, 2023, which caused Solana's Saga phone to sell out, as some airdrops targeted mobile phone owners.
Nevertheless, the bullish momentum was supported by a significant surge in volume within Solana's decentralized applications (DApps) ecosystem. This occurred despite multiple competing blockchains experiencing outages due to increased activity in December 2023, including Arbitrum, zkSync and BNB Chain.
