Solana (SOL) Slumps; BNB Surges to Regain 4th Market Cap Rank
Solana (SOL) shed nearly 8% over the past 24 hours, extending this weekās pullback to over 22% from Mondayās 10-month high above $125. The slump came as a speculative rush cooled around Solana-based meme coins after massive rallies.
Key Takeaways
- SOL retreated from $125 to near $100.
- Solana meme coins that pumped earlier this month, like BONK and WIF, have now dropped almost 50% from their all-time highs.
- The frenzied activity gave way to profit-taking as traders cashed out gains.
- Rival token BNB also claimed the No. 4 spot by market capitalization.
SOLās price crumbled from its highest level since April 2022, reaching $125 on Monday. The drawdown saw nearly $15.92 million worth of leveraged long positions forcefully closed by exchanges due to inadequate margins, according to Coinglass data.
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Solana recovers slightly after falling below $100
The cascading liquidations likely accelerated and perpetuated selling pressures. Solana momentarily sank below $100 on Thursday before recovering modestly.
Meanwhile, speculative fervor faded around Solana meme coins that pumped to staggering heights earlier this month on the back of community shilling. Now, those tokens have shed 50% or more from their highs. The euphoria made way for profit-taking as traders secured substantial gains made during the frenzy.
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As the gains were slowly draining out of SOL, rival token Binance Coin (BNB) emerged as an immediate beneficiary, jumping 6% in 24 hours. BNB reclaimed the No. 4 ranking by market capitalization from SOL a day prior, as its valuation topped $50 billion.
With 916% returns in 2023 so far, traders likely remain overwhelmingly bullish on Solanaās prospects after last yearās catastrophic decline. SOL is up by over 75% in the last 30 days, whereas BNB has exhibited a modest 45% gain during the same period.
