Solana price suffered the past few weeks as volume shifted to Tron following the SunPump platform’s launch, a so-called ‘vampire attack’ by SOL maxis. Tron founder Justin Sun announced his intentions to further increase usage of the network by harnessing the power of the meme coin industry. The strategic move by Sun led to significant shifts in trading volume, drawing attention to the contrasting fortunes of the two networks.
Solana Price Suffers Following SunPump Launch
A ‘vampire attack’ is a strategy in the crypto space where one blockchain or decentralized protocol attempts to siphon users and liquidity off another chain. On August 13, Justin Sun posted on SunPump, a Tron-based variation of the insanely successful Pump.fun on Solana.
Over the following days, SunPump received a staggering inflow of volume and users, and the SUN token took off.
Additionally, TRX price (red) began to surge, surpassing Cardano (ADA) and Ton (TON), while Solana price (blue), on the other hand, began to decline.
Solana suffered not only in price but also in terms of users, volume, and fees. According to data from Dune Analytics, Solana total fees and Jito tips are down more than 50% since Justin Sun copied Pumpfun on Tron.
It has also been noted that most of the fees generated on Solana are priority fees or MEV tips. That means that if the Solana ‘degens’ move to Tron, the network revenue from priority fees and MEV tips will gravitate to $0.
For context, Solana had made an average of $1 million per day in revenue from fees. However, after the launch of SunPump, Solana revenue now struggles to break $500,000 daily.
Solana Price Analysis
Solana price began in September under pressure, training around $134 and losing almost 25% over August. However, technical analysis indicates that the SOL price sits comfortably inside a 187-day consolidation zone. The asset tested the lower boundary five times during that period, reinforcing its strength.
Conversely, the major resistance around $200 is relatively weak because it was only tested once. However, stronger resistance exists just below it, around $180, with another weaker one below that at $160.
Solana price prediction shows that if it can break above the immediate resistance at $160, it can surge to $180 and potentially $200. This would comprise over 50% of gains from the current price. However, if bears break the robust support at $120, SOL price may drop to $80.
Frequently Asked Questions (FAQs)
A ‘vampire attack’ refers to a strategy where one blockchain or decentralized protocol attempts to siphon users and liquidity from another chain. This is typically done by offering similar or enhanced features to attract users from the targeted platform.
The launch of SunPump on the Tron network led to a massive inflow of users and trading volume, negatively impacting Solana. Solana experienced a sharp drop in price, user activity, and network fees, with daily revenue dropping from $1.5 million to less than $500,000.
While Solana is under pressure, it still sits within a 187-day consolidation zone. If it can break above the immediate resistance levels and regain user activity, there’s potential for recovery. However, this depends on whether Solana can attract its core user base back from Tron.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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