SOL price capped at $140 as altcoin ETF rivals reshape crypto demand

Solana's native token, SOL, recently dropped 6% after failing to break $147, influenced by risk-averse sentiment following weak US job data and soft consumer sentiment. Network activity is declining, with Solana's Total Value Locked (TVL) falling to $10.8 billion from $13.3 billion two months prior, and decentralized exchange (DEX) volumes dropping 40% in the last four weeks. This reduced on-chain activity, coupled with macroeconomic concerns like corporate layoffs and tightening consumer credit, is dampening demand for SOL. Furthermore, the approval of spot ETFs for rivals like XRP, Litecoin, and Dogecoin is reshaping institutional capital flows, creating new competition. While bearish leverage demand remains low, a potential catalyst for a rebound could be expected government stimulus measures, which might reignite broader altcoin demand.

(Source：Cointelegraph)