The cryptocurrency market is witnessing a dramatic change with Solana experiencing a significant decline. Meanwhile, famous economist Max Keizer claims that a ‘rug pull’ has begun in the altcoin project. Macro Guru reminds us of this every time SOL drops in price. This has sparked debate and concern among both investors and industry experts.
Solana ecosystem and altcoin price exploded
The price drop follows a period of intense activity in the Solana ecosystem sparked by the launch of the Jito (JTO) token and the launch of the BONK meme coin. cryptokoin.comAs you follow from , JTO entered the list of major stock exchanges on December 7, 2023. Following this, the token quickly reached a market cap exceeding $300 million. Meanwhile, BONK has come up with certain airdrops that primarily target mobile device owners. This caused Solana’s Saga phone to sell out.
Blockchain’s fast transactions, low fees, and large number of meme coin issuances have increased interest in the network. This increased the altcoin price from $38 at the beginning of November to approximately $127. The value locked into Solana applications has also increased significantly. In this process, it reached $1.53 billion, up from $400 million in November.
Solana also surpassed Ethereum in terms of seven-day transaction volume and network fees. This revealed the potential of the altcoin project.
Solana’s network activity is slowing down
However, there was a shift in investor sentiment in the second half of December. It also suffered from profit taking and loss of momentum on new launches. Capital began to move towards opportunities in other Blockchains. This led to a significant decline in Solana’s presence in the market. The initial craze for meme coins on the Solana network has also died down. Tokens that have seen meteoric rises in value, such as JTO, BONK and Dogwifhat, are now experiencing significant declines.
JTO is down more than 70% after soaring 3,200%. On the other hand, BONK, which rose over 1,000% in three months, has fallen over 73% from its peak in December. WIF, meanwhile, has fallen nearly 80% after initially giving early owners more than a 10,000% return on their investment. Meanwhile, OKX listed JTO and BONK on the futures market. In this context, it allowed trading with up to 50 times leverage. However, despite this, altcoin prices could not gain upward momentum.
Other lesser-known tokens like POPCAT and CHIPI have also fallen more than 90% from their all-time highs.
Max Keiser predicts a sharp drop in altcoin price!
In the midst of these developments, Max Keiser, host of The Keizer Report on RT, reiterated his earlier views on Solana. In his first post, Keizer warned altcoin investors that the “Rug pull” has begun. He then continued to remind us of this warning with every drop in the price of SOL.
The analyst with the pseudonym Pentoshi also makes a trade prediction close to this view. The analyst expects a potential decline in Solana’s price. Accordingly, he suggests that there is an opportunity to bid in the $70 range in the future. Pentoshi shares the following prediction:
I’m not sure we’ll get as low as we do here. However, I’m hopeful we can offer in the $70s at some point. I look forward to not only trading SOL but also holding some ecosystem coins for the next year or so.
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