This is part of the Lightspeed newsletter. To read the full editions, Subscribe.

About a month ago, SOL hired A New all-time high Priced at $263.

Since then, the asset's price has only declined, which fell below $190.

The 25% slide dropped Solana a few notches on the cryptocurrency leaderboard. SOL is now the sixth largest crypto asset by market cap, trailing behind Bitcoin, Ethereum, Tether, Ripple and BNB. Some have pointed to hot new exchange Hyperliquid as a competitor to SOL, but other market watchers say Solana is likely to stay in business after a slight decline.

For context, all cryptocurrencies have had a tough week after the recent FOMC meeting left investors feeling one way or another Bearish despite another interest rate cut.

However, of all the major coins that saw Santa retreat, SOL showed “particular weakness,” David Lawant, head of FalconX research, wrote on Friday. Memecoins like SHIB and DOGE performed even worse, perhaps indicating that the more volatile cryptocurrencies are, the harder they fall. Although SOL is far from being a memecoin, it certainly has a higher beta than BTC or ETH. But that didn't stop XRP and BNB from overtaking Solana.

Solana investors may partially price SOL token opening at $2.1 billion decided on March 1, 2025 and could put downward pressure on the asset if unsecured tokens are sold.

Alan Urwick, co-founder of Quai Network, said SOL's price could also face difficulties because of a new competitor in Hyperliquid that is alienating some investors. Hyperliquid is a decentralized, layer-one cryptocurrency exchange focused on trading perpetual futures. The HYPE token was airdropped earlier this month One of the biggest In the history of encryption. HYPE is already the 25th token by market cap.

Since Hyperliquid is so fast, some started Contact It's a better version of the speed-focused Solana - although its momentum has stalled somewhat in recent days amid speculation that North Korean hackers... Exploitation planning From blockchain.

Urwick added that a pro-crypto Trump administration and potential approval of the SOL ETF could be positive for the asset next year.

Plus, there are always memecoins.

The launch pad and main driver of Solana onchain Pump.fun activity “will likely not be shut down by the Fed until 2028,” said Nick Chicago, co-founder and CEO of CFX Labs. “We wouldn't be surprised when big brands make memes.”

Chicago was bullish for unknown reasons as well: his mother-in-law, who typically buys cryptocurrencies at highs, “hasn’t posted yet.”

Start your day with the best cryptocurrency insights from David Kanellis and Katherine Ross. Subscribe to the Empire Newsletter.

Explore the growing intersection between cryptocurrencies, macroeconomics, politics, and finance with Ben Strack, Casey Wagner, and Felix Goffin. Subscribe to the Forward Way Newsletter.

Get alpha straight to your inbox with 0xResearch Newsletter - Market highlights, charts, trade ideas, management updates, and more.

The Lightspeed Newsletter has everything Solana, in your inbox every day. Subscribe to Solana Daily News By Jack Kopenick and Jeff Albus.