In July, Solana’s decentralized exchanges (DEXs) handled 30% of the total crypto trading volume, surpassing Ethereum. However, the cryptocurrency market is now experiencing significant challenges due to a $500 billion drop triggered by a sell-off in the Japanese stock market.
Solana’s price could decline further to $107 if it falls below $115. Bitcoin has dropped over 10%, trading at $53,270, while Solana has decreased nearly 17%. The overall crypto market value has fallen by 13%, down to $1.87 trillion. Despite the market downturn, trading volume has surged by 119.72%, reaching $142.44 billion.
Solana Interest Rises Amidst Market Turmoil and Japanese Stock Sell-Off
Interest in Solana has been increasing as traders anticipate the launch of Solana ETFs in the U.S. However, recent drops in crypto prices are linked to a significant sell-off in the Japanese stock market, particularly the Nikkei 225 index, which fell by 7.1%.
On August 2, Japanese bank stocks saw their worst performance since 2008, triggered by the central bank’s decision to raise interest rates. This abrupt market downturn led to a massive $500 billion loss in the total crypto market capitalization over three days, marking the largest 72-hour decline in over a year.
Solana DEX Performance Amid Market Downturn
Despite the broader market decline, Solana’s decentralized exchange (DEX) protocols have shown strong performance. In July, Solana accounted for 30% of the total crypto DEX volume, surpassing Ethereum’s 28.12%. By the end of the month, Solana’s DeFi ecosystem processed $56.849 billion in transactions, outpacing Ethereum’s $53.867 billion.
Currently, Solana (SOL) is trading at $121.58, reflecting a significant drop of 15.76% in the past 24 hours and 37.2% over the past week. If Solana’s price falls below $115, it could decline further to the $107 support level. Conversely, if it rises above $135, it might reach the $164 resistance level.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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