Solana price slide due to jump trading activity
Many digital currencies are consolidating their value to end the first month of the year with relatively high growth rates. In the case of Solana (SOL), the cryptocurrency is trading at a price of $23.78, by 1.42% in the last 24 hours and by 2.98% in the last week, to follow the broader ecological process.
Although higher-end Layer 1 protocols are experiencing similar price declines, the downward trend in Solana can be linked to recent venture capital firm Leap Trading’s trading activity. In an update shared by the crypto analytics service provider, the firm is currently dropping its Lido DAO (LDO) token, a trend that started four days ago.
We have noticed that jump trading has started to transfer. $LDO to the #Binance 4 days before, and after that, the price $LDO Decreased by ~10%.
13 hours ago Jump Trading started streaming. $LDO to the #Binance Again, and price $LDO It has since declined by ~5%.https://t.co/rxksXerU8Y pic.twitter.com/UtcSsyYK3j
– Lookonchain (@lookonchain) January 31, 2023
The VC company was transferring the LDO tokens to Binance, the last one was in the last hours of Monday, as the sale proposal lowered the price of LDO.
As one of the top-performing decentralized finance (DeFi) protocols on Solana, the sell-off and decline in the price of LDO has also affected SOL.
Solana is still the clear winner
As Solana’s performance is highlighted every month, it is clear that Solana is one of the top 10 cryptocurrencies by market capitalization.
The cryptocurrency has surged 139.9% in the past month, hitting a 30-day high of $26.65. Solana’s dramatic price action was triggered by several fundamentals, including the rise of the sentimental meme coin BONK. Bonk sparked the community and helped increase the transaction count on the Solana blockchain in the first half of the month.
By hinting that the upcoming Solana phone will support the burning of the BONK token, Solana ecosystem users have translated the coin’s future growth into purchasing participation.