Solana (SOL) experienced a significant setback, plummeting by 15.9% on March 19th to reach a five-day low of $166. This drop came on the heels of a week-long rally that briefly propelled the token close to $210, achieving a new all-time high market capitalization of around $92 billion.

As of the time of reporting, SOL managed to recuperate some of its losses as market sentiment shifted to a bullish stance after a day of significant decline. Presently, the token is trading at approximately $174, boasting a market cap of about $77 billion, according to data sourced from CryptoSlate.

Solana’s recent dip brings to mind its comparatively low figures on March 14th when the asset hit as low as $162, accompanied by a market cap of $71.9 billion.

Despite being one of the biggest losers over the past day, SOL is still hovering slightly below recent highs and has recorded a 15% increase over the past seven days. However, the broader market trend has taken a bearish turn since March 16th, with both Bitcoin and altcoins witnessing a downward trajectory as bears exert pressure on prices ahead of the Federal Reserve’s FOMC meeting.

Solana Tokens Affected

The downturn in SOL prices extended to the majority of Solana-based tokens, with 71 out of 85 tokens experiencing losses based on CryptoSlate data. LuaSwap (LUA) suffered the most significant daily loss, plummeting by 62%, closely followed by KING with a decline of 32.3%. Furthermore, the two primary DEXs (Decentralized Exchanges) on Solana, Jupiter (JUP), and Raydium (RAY), experienced drops of 13.27% and 22.17%, respectively.

Despite the widespread losses, some Solana-based tokens managed to evade the downward trend. DEX launchpad Dexlab (DXL) recorded gains of 31%, while the infamous DeFi platform Mango (MNGO), which had previously been hacked, saw gains of 21%. Eleven other Solana-based assets witnessed gains ranging between 3% and 13%. On average, tokens in this category experienced a 6.21% decline over a 24-hour period, which was slightly less severe compared to the overall market losses of 8.0%.

Diminishing Memecoin Hype

Earlier in the month, Solana prices surged amidst the excitement surrounding memecoins, partly fueled by the Dogwifhat (WIF) craze. Similar to many other tokens, SOL also benefited from a robust crypto market that remained resilient even after Bitcoin’s brief flirtation with all-time highs.

Solana has also witnessed substantial DEX trading volumes, with reported volume reaching $2.8 billion on March 18th. This coincided with SOL achieving an all-time high against the price of Ethereum (ETH).

However, the recent losses suggest that Solana’s per-token price in US dollars may not continue its upward trajectory indefinitely. Nevertheless, it remains plausible that other trends and developments could potentially revive its price performance.