TVL, network outages, or derivatives: What’s behind Solana’s (SOL) 60%+ drop? By Cointelegraph

The past couple of months have not been kind to cryptocurrencies. The sector’s aggregate market capitalization plunged 50% from a Nov. 10 peak at $2.87 trillion to the current $1.44 trillion. ‘s (SOL) downfall has been even more brutal, presently trading at $88 after a 66% correction since its $260 all-time-high.

Pinning the underperformance exclusively to the recent network outages seems too simplistic, and it doesn’t explain the accelerated decoupling over the past week, so let’s take a look at what might be going on.

Solana/USDT at FTX (blue) vs. Total crypto capitalization (orange). Source: TradingView
Solana network Total Value Locked, USD. Source: DefiLlama
Solana dApps 30-day on-chain data. Source: DappRadar
Solana futures aggregate open interest. Source: Coinglass