- Solana’s price experienced an 18% drop over several days, followed by a partial recovery of 4.5%.
- SEC regulatory uncertainty and Solana’s outperformance over Ethereum in fee revenue and MEV likely drive the price fluctuations.
- There’s significant volatility in the market as some altcoins lose heavily while others gain, with substantial liquidations totalling US$284.60 million.
Solana has seen a turbulent few days with the price of SOL dropping from US$193 (AU$296) in late July, to as low as US$159 (AU$244), an almost 18% drop in just close to four days. Over the past few hours SOL managed to climb back up 4.5% but lost most of these gains at the time of writing.
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Why is The Price of SOL Flip-Flopping?
There’s been a lot happening around Solana and it’s not all just about memecoins. Solana has recently outperformed Ethereum in several metrics for the first time, including weekly fee revenue and maximum extractable value (MEV).
Another talking point was the recent reports that the United States Securities and Exchange Commission (SEC) may be softening its stance on crypto. The SEC previously alleged that several altcoins, including SOL, ADA, MATIC and others, are securities.
However, in a recent filing the regulator stated its intention to amend its complaint concerning ‘Third Party Crypto Asset Securities’ defined in its opposition to Binance’s motion to dismiss. This move refrains from pressing the court to decide whether the tokens involved are securities, leaving the matter unresolved for now.
This is why not only the SEC appears to be oscillating but also the price of SOL.
Losers and Winners Differ More Than 20%
Interestingly, several altcoins are moving in opposite directions. While Beam (-10.33%), Arweave (-10.12%), and Dogwifhat (-8.15%) all faced hefty losses over the past 24 hours, Aave (+9.47%), Aioz Network (+8.65%), and Mantra (+7.49%) saw solid gains. This creates a spread of up to 20% between the biggest losers and winners.
The current situation shows that significant volatility and divergence have entered the altcoin market.
Not surprisingly a large number of trader liquidations and the high value of total liquidations complements that scenario. As data from Coinglass shows more than 100k traders have been liquidated in the past 24 hours.
Related: MicroStrategy Raises US $2 Billion to Buy Bitcoin as Questions Emerge Over Cash Flow
With total liquidations of US$284.60 million (AU$437.35m), the most liquidated asset was BTC, with a total of US$77.80 million (AU$119.52m) liquidations, including US$46.71 million (AU$71.76m) longs and US$31.08 million (AU$47.74m) short positions liquidated.
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