Solana misses out on altcoin resurgence, here’s why

• Altcoins impacted by SEC surged, but SOL saw little improvement.
• Solana stakers remained positive even as network protocols shut down.

The SEC lawsuit impacted the altcoin sector massively. However, according to new data, the state of these altcoins has improved over the last few days.

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Altcoin season?

Based on the data provided by CryptoQuant, the Crypto Securities Index, which monitors coins designated as securities by the SEC, was experiencing a resurgence at press time.

Since reaching its low point on 14 June, the index witnessed a remarkable increase of 22%. Similarly, during the same period, the Commodities Index, comprising Bitcoin [BTC] and Ethereum [ETH], surged by 16%.

Source: CryptoQuant

The collection of cryptocurrencies as securities, as labeled by the SEC, included coins such as Avalanche [AVAX], Polygon [MATIC], and Solana [SOL]. But despite the surge in the price of other altcoins, SOL continued to face the bears at press time.

Since 4 June, SOL’s price has fallen by 16.4%. The price has consistently showcased higher lows and lower lows since that period, indicating a bearish trend. At press time, SOL was trading at $18.64.

Its RSI had declined significantly to 44.20, suggesting that the momentum was with the bears at the time of writing. The CMF, on the other hand, was relatively high at 0.11, showing that the money flow for SOL was relatively positive.

Source: Trading View

Despite the bearish behavior exhibited by SOL, the stakers on the SOL network remained positive. According to Staking Rewards’ data, the number of stakers on the Solana network increased by 3.46% over the last month, reaching 648,007 at the time of writing.

Source: Staking Rewards

Coming to Solana’s ecosystem, things weren’t all that positive. A protocol on Solana, known as the Cardinal, which successfully raised $4.4 million in a seed financing round in July 2022, made an official announcement regarding the gradual closure of the protocol.

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The project, spearheaded by Solana Ventures and Protagonist, with participation from Animoca Brands and other entities, encompassed a range of functionalities including NFT leasing, staking, ticketing, custody, and more.

Cardinal attributed the decision to close the protocol to challenges posed by the prevailing macro environment.