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Solana (SOL) Fall Might Be Stirred by Jump Trading, Here's How

Tue, 01/31/2023 - 14:59
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Godfrey Benjamin
Solana price slides as result of trading activity from Jump Trading
Solana (SOL) Fall Might Be Stirred by Jump Trading, Here's How
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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.

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.

Solana (SOL) Migrating to New NFT Standard in Next 60 Days

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.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.