In the past 24 hours, the SOL cryptocurrency has plummeted by 7%, while AVAX has experienced a 9% decrease. The coins that showed explosive growth towards the end of last year have now lost most of their profits. The main breakout of the Solana blockchain, the meme token Bonk, has seen a 10% price drop overnight, and Joe, an Avalanche-based token, has fallen by 12%.
On the other hand, Dogecoin is currently trading at $0.07, with a brief increase to $0.09 over the weekend due to speculation about its implementation in the payment service of the social network X (formerly Twitter).
The CoinDesk 20 Index, which tracks tokens with the highest capitalization, has fallen by approximately 4%.
According to analysts at Bitfinex, a crypto exchange, the recent decline in Bitcoin’s value has wiped out gains for short-term investors. Additionally, the level of realized losses has increased, further aggravating the decline in the market.
In December, the Solana ecosystem witnessed a boom, with SOL even reaching the fourth position in market capitalization. However, the coin has now dropped back to the fifth place, trailing behind BNB.
At the beginning of January, analysts already noted a sharp decrease in the price of meme tokens on the Solana blockchain, following their resounding success in December. On average, their cost has decreased by 80%.