SOL experienced a correction alongside the broader crypto market sell-off, but data suggests more concerning reasons for the price drop.
Solana's native token, SOL, priced at $464, witnessed a 9% dip on January 18, hitting a low of $91.40. The continuous rejection at the $100 level persisted over the last 15 days. However, this shouldn't be a cause for extreme concern, considering that the total cryptocurrency market value failed to sustain above $1.6 trillion throughout 2024. Despite the recent setback, SOL recorded an impressive 84% gain in December, leading to investor concerns about the lack of positive momentum in the price.
FOMO surrounding Solana SPL token listings and airdrops fades away.
The FOMO (fear of missing out) that drove SOL's surge in December 2023 was triggered by the appreciation of Solana SPL token airdrops, including Jito (JTO), BONK, and Dogwifhat (WIF). This movement boosted demand for the Solana Saga token as some projects offered exclusive deals to these users. However, the tide seems to have turned, as BONK faced a 15% correction between January 17 and 18, while JTO experienced a 19% drop in the same period.
Another factor contributing to SOL's recent correction was the excessive optimism caused by the anticipation of airdrops. Some launches took longer than expected, while others provided only a temporary and short-lived boost to their decentralized applications (DApps), fading after the respective airdrop snapshots. Analysts and influencers created lists of the most promising opportunities, but almost none of the tokens achieved significant valuations and volumes.
In a December 12, 2023, X social media post, IcedKnife mentioned some expected releases in the Solana ecosystem, including Kamino, Drift, Tensor, Jupiter, Parcl, Marginfi, and many others.
