Are you following the crypto world from the beginning of the current bull run, so since October 2023? If yes, you are aware that in 2023, the SOL price was about $15 before hitting an all-time high of around $294 last month.
Besides strong Solana price action, the whole ecosystem had a better time than Ethereum one with more trading volume and more tokens that exploded such as BONK, FARTCOIN, PENGU or TRUMP.
However, in the past few weeks, it does look like the momentum has shifted and Solana started to slow down. The SOL price is now trading around $181, after plunging 11% in the last 7 days.
Number of active wallets on Solana dropped to below 3 million daily this weekend, which is the lowest number of daily active wallets in the last 3 months, based on Solscan data.
What’s also worrying is the fact that 2 biggest crypto losers among top 100 coins today are actually native tokens of 2 biggest exchanges on Solana – Jupiter and Raydium. Both JUP and RAY are facing double-digit declines in the last 24 hours.
$ETH starts to get some momentum.
— Michaël van de Poppe (@CryptoMichNL) February 17, 2025
Within the Web 3 ecosystem, I think we'll strongly see the rotation from $SOL to $ETH.
People are done with the memecoin casino and it's having a lot of flaws, which usually signals the end of a period.
Utility coins next. pic.twitter.com/DgKZtdWH2c
Respected crypto analyst Michaël van de Poppe, with his following of nearly 800,000 on X, sees a potential shift in the market. He believes we’re witnessing a rotation from Solana to Ethereum as investors grow tired of the memecoin frenzy. Van de Poppe points to Solana’s technical issues as a sign that this cycle’s SOL dominance might be waning, suggesting utility-focused coins could take center stage next.
What This Means for Solana?
Looking at everything that’s happening right now, Solana might be in for a rough ride. The price is down, fewer people are using the network, and its biggest projects Jupiter and RAY are taking serious hits. We’ve seen Solana deal with technical problems before, but this time feels different.
The market seems to be moving away from memecoins and speculation, which were Solana’s strong points during this bull run. While it’s too early to say this is the end of Solana’s dominance, these warning signs shouldn’t be ignored. Then again, crypto is crypto – everything can change in a matter of weeks.
Read also: Next Solana Meme Coin Sensation? ‘ChowWow’ Launches Highly Anticipated Presale
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