Many digital currencies are consolidating their prices in order to end the first month of the year with a relatively higher growth rate. In the case of Solana (SOL), the cryptocurrency is trading at a price of $23.78, down 1.42% over the past 24 hours and by 2.98% in the past week to trail the general trend in the broader ecosystem.
Though the top-ranked Layer 1 protocols are experiencing a similar price slump, the downtrend in Solana can be linked to the recent trading activities of venture capital firm Jump Trading. In an update shared by the crypto analytics service provider, the firm is currently dumping off its Lido DAO (LDO) token, a trend that started about four days ago.
We noticed that Jump Trading started transferring $LDO to #Binance 4 days ago, and after that, the price of $LDO dropped by ~10%.— Lookonchain (@lookonchain) January 31, 2023
13 hours ago, Jump Trading started transferring $LDO to #Binance again, and the price of $LDO dropped by ~5% after that.https://t.co/rxksXerU8Y pic.twitter.com/UtcSsyYK3j
The VC firm was reportedly transferring the LDO tokens to Binance, the last of which was in the last hours of Monday, as the sell-off continued to shrink the price valuation of LDO.
As one of the top performing Decentralized Finance (DeFi) protocols on Solana, the sell-off and drop in the price of LDO also had a ripple effect on SOL.
Solana is still clear winner
When the performance of Solana is highlighted on a month-to-date basis, it is obvious that Solana comes off as one of the biggest gainers among the top 10 cryptocurrencies by market capitalization.
The cryptocurrency is up by 139.9% over the past month, inking a 30-day high of $26.65. The impressive Solana price action was induced by a number of fundamentals, including the rise of sensational meme coin Bonk (BONK). Bonk stirred up the community and helped increase the transaction count on the Solana blockchain in the first half of the month.
With hints that the upcoming Solana phone will support BONK token burning, Solana ecosystem users saw the future growth in the coin that translated to increased buying engagement.