Solana Loses 12 % In Two Days, Investors On Alert

The leverage effect, driver of soaring increases, becomes a formidable trap when the market turns. Solana (SOL) suffers the consequences, with a brutal drop to 213 dollars, its lowest level in two weeks. While the Fed briefly rekindled risk appetite, persistent tensions over inflation and employment quickly reversed the trend.

A drop in cryptocurrency price and a collapse of leverage

The brutal correction of Solana (SOL) accelerated early in the week, resulting in a 12 % drop in just 48 hours, while crypto aims for $1,000. This decrease caused the liquidation of $112 million in leveraged long positions, according to CoinGlass data, a sign of a wave of capitulation among the most exposed investors.

The crypto price thus fell to 213 dollars, its lowest level in two weeks. This bearish dynamic occurs within a risk aversion context, fueled by the resurgence of macroeconomic concerns, notably after statements by the US Federal Reserve Chairman, Jerome Powell, about persistent inflationary pressures.

Moreover, the funding rate of SOL perpetual contracts returned to a level close to zero, even slightly negative, indicating a clear disengagement of bullish traders.

Under neutral market conditions, this indicator normally ranges between 6 % and 12 %, meaning buyers pay to maintain their exposure. In this context, several indicators reflect a gradual disappearance of risk-taking on the derivative market :

• The funding rate was neutral even when SOL was at $253 last Thursday, showing no bullish momentum despite the price increase ;

• The last peak of speculative euphoria dates back to August 14, when the funding rate reached 30 %, proof of a now-ended bullish craze ;

• No clear technical signal emerges at this stage, although previous periods (early and mid-August) showed similar phases preceded rapid rebounds (+19 % and +25 % respectively).

The bullish leverage is contracting, not necessarily in anticipation of a brutal drop, but because overall conditions, both on prices and macroeconomic fundamentals, encourage restraint.

Network activity decline and emergence of competitors reshape the landscape

Beyond speculative dynamics, the Solana ecosystem also seems to show signs of slowdown. According to Nansen data, the number of active addresses on the network dropped by 28 % over the past seven days, while transaction fees declined by 15 %.

This decline contrasts sharply with Ethereum’s performance, whose fees increased by 28 %, and especially the BNB Chain, which recorded a 74 % surge. At the same time, players like Aster, a new derivatives trading platform launched on the BNB Chain by YZi Labs (formerly Binance Labs), attract increasing attention. Presented as “maximal extractable value free” (MEV-free), it benefits from the open support of Changpeng Zhao, former CEO of Binance.

The rise of Hyperliquid and the development of a proprietary blockchain by Aster reinforce this competitive pressure. These crypto platforms, by specifically targeting perceived weaknesses of Solana, reshape the power dynamics between L1 and L2.

However, despite these tensions, Solana retains solid fundamentals. The network remains the leader in number of transactions and second in total value locked (TVL) behind Ethereum.

Moreover, some companies continue to believe in the network’s potential. Fitell Corp (FTEL), an Australian company, recently issued a $100 million convertible bond to launch a “Solana treasury strategy”, combining on-chain deployments and derivative instruments to generate yield.

The drop in long leverage on Solana reflects a short-term loss of confidence, but the network fundamentals remain strong. While activity declines and new competitors emerge, some institutional players continue to bet on crypto. The $200 threshold could become a decisive inflection point. If caution dominates, the rebound potential of the SOL price is not to be excluded.