Solana's SOL Dips Below $100, Slips Back Behind BNB in Crypto Ranking

Traders were moving capital from SOL to stablecoins suggesting profit taking, one analyst said in an interview.

AccessTimeIconDec 28, 2023 at 5:52 p.m. UTC
Updated Apr 9, 2024 at 11:12 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Solana (SOL) buckled Thursday almost 6% over the past 24 hours to $98 as the previous weeks' ecosystem frenzy and Solana-based meme coin rally showed signs of losing steam.

With the latest decline, SOL extended its pullback to over 20% from $125 on Monday, its highest price since April 2022, CoinDesk data shows. At press time, SOL pared some of its losses and was changing hands at slightly above $100.

Over the past three days, some $32 million worth of leveraged long positions – bets on higher prices – got liquidated as trading platforms forcibly closed trades due to insufficient margin, accelerating the pullback, CoinGlass data shows.

Solana-based meme tokens such as BONK and WIF, which saw meteoric rises earlier this month, are down over 50% from their all-time highs recorded in December, pointing to profit taking and cooling interest in participating in the frenzy.

Amid SOL's pullback, the BNB Smart Chain's native token (BNB) rallied 9% in the past 24 hours and took back the fourth spot in the cryptocurrency ranking by market capitalization from solana.

Why Solana's SOL is down

Solana is one of the best-performing crypto assets of 2023 rallying 900% from around $10 in early January, rejuvenating its ecosystem after being one of the most beaten-down assets during the bear market.

However, the token was due for a short term pullback as the rally showed signs of overheating based on elevated fund rates for derivatives positions, David Shuttleworth, research partner at Anagram, said in an interview via X direct messages.

Trading data suggests traders were increasingly moving capital out of SOL to stablecoins, locking in profits or reducing their exposure to the token, Shuttleworth added.

"There was a quick rebalancing against long positions, many of which were caught out of position and overleveraged," Shuttleworth told CoinDesk.

Edited by Danny Nelson.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Krisztian  Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.