Solana Remains Bullish Despite SOL Labeled As Security

• Solana (SOL) price dropped 11% in a week
• SOL’s social mentions declined by 50.7% in the last 7 days.
• Solana Foundation defends SOL as not a ‘security’ as alleged by the SEC.

Solana (SOL) landed on the SEC’s list of cryptocurrencies labeled as ‘securities’ on Monday. In the wake of that, the SOL markets have entered their chaotic volatile phase.

Defending a concrete stance, the Solana Foundation stated to CoinDesk that SOL, the native token of Solana, is not a security. Likewise, the developers are unbothered by the SEC’s allegation. But yet, the aftermath highlights the downtrend of SOL. In the last week, SOL plunged 11%.

The data from TradingView reflects SOL’s bearish condition and closer proximity to the oversold zone. Moreover, the current price momentum does not signal any possibility of a trend reversal. Nor does the magnitude of selling pressure around the asset is decreasing.

No Sign of Recovery for Solana (SOL)?

The SEC’s lawsuit with Binance and Coinbase induced a notable drop in the price of SOL since Monday. Besides this, declines in the network’s, Solana’s, total value locked (TVL), and daily revenue were also observed.

Firstly, the TVL dropped 4% from $282.51 million on June 5 to $270.15 million at press time. Secondly, the daily revenue plummeted by 15.8% in three days — $21.02K on June 5 to $17.68K on Thursday. As per Messari data, Solana generated $4 million in Q1 2023.

According to data from LunarCrush, social intelligence tool for cryptocurrencies, Solana (SOL) witnessed negative trends on social media as well. Over the past seven days, the social mentions involving SOL decreased by 50.6% on Crypto Twitter and by 2.7% on news.

Ultimately, this whole bearish picture seems disappointing to SOL traders. But on the other side, the L1 blockchain Solana is printing its bullish picture for Q2 2023. It pushes its efforts to bolster the crypto and the web3 ecosystem. To begin with, the protocol implemented state compression that made minting of high-volume NFTs on Solana. Remarkably, Solana native Mad Lads turned into one of the most hyped NFT projects.
The launch of its Web3 mobile Saga surfaced in the headlines too. Furthermore, the network dominated liquid staking with its native Marinade Finance protocol. Spiking dev activity signifies the determination of Solana developers to uphold the PoS blockchain denying the SEC’s allegations.

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