Analysts suggest that Solana (SOL) is lagging behind leading cryptocurrencies like Bitcoin, Ethereum, and XRP. The expectation is that SOL is more vulnerable to significant price declines as investors reduce their risk exposure and cash in profits.
Dean Chen, an expert at the Bitunix crypto exchange, noted that according to CoinGlass data, the cryptocurrency market experienced liquidations exceeding $290 million in a single day. Assets with high leverage and lower liquidity, such as Solana, faced steeper price drops.
Data indicates that Solana derivative contracts contributed $31.6 million to these forced liquidations over the past 24 hours. By comparison, Ethereum liquidations totaled $68.5 million, and Bitcoin liquidations reached $52.2 million. According to CoinGecko, Solana’s current price is around $213, reflecting a decrease of approximately 3% in the last day and over 9% in the past week.
Chen further commented that the positive news from the prior week regarding the Solana treasury, involving Forward Industries and DeFi Development Corp., had already been factored into the market price. This is because these companies had previously announced their intentions to acquire SOL.
Solana Treasury Firm Holdings Could Double as Forward Industries Unveils $4 Billion Raise
Forward Industries (FORD), listed on the NasdaqCM, announced its $1.65 billion fundraising and plans to purchase Solana shortly before the SOL acquisition occurred. Similarly, DeFi Development (DFDV), also on NasdaqCM, has been accumulating Solana since April.
Chen explained, “The market responded to the official announcements with a classic ‘buy the rumor, sell the news’ pattern. This led speculative investors to sell their holdings, which accelerated the price correction.”
The recent downturn in SOL’s price has led users on Myriad, a prediction market owned by DASTAN (the parent company of Decrypt), to express doubt about whether the cryptocurrency will achieve a new all-time high by the end of the year. Currently, predictors estimate a 50-50 chance of Solana surpassing its existing record of $293.31 in 2025. Just days ago on Sunday, predictors were more optimistic, estimating a near 65% probability.
Gordon Grant, a portfolio manager and head of derivatives at Bitwise, a crypto index fund manager, pointed to other contributing factors. He indicated to Decrypt that the upcoming significant distribution from the FTX estate at the end of the month had a negative impact on market sentiment.
“Considering the recent 50% rally from early August levels, the current 15% pullback from $250 to $210 doesn’t appear excessive in the short term,” Grant explained.
The FTX Recovery Trust announced late last week its plans to distribute an additional $1.6 billion to creditors by the end of the month.