Can Solana Price Reclaim $200 in the Aftermath of Tron’s Vampire Attack?
Highlights
- Solana price eyes a 51% rally to $200 with $160 and $180 as barriers.
- Solana's daily average revenue dropped from $1.5 million to less than $500,000.
- On-chain metrics show SOL needs its ‘gamblers’ as most fees come from priority fees or MEV tips.
Solana price suffered the past few weeks as volume shifted to Tron following the SunPump platform’s launch, a so-called ‘vampire attack’ by SOL maxis. Tron founder Justin Sun announced his intentions to further increase usage of the network by harnessing the power of the meme coin industry. The strategic move by Sun led to significant shifts in trading volume, drawing attention to the contrasting fortunes of the two networks.
Solana Price Suffers Following SunPump Launch
A ‘vampire attack’ is a strategy in the crypto space where one blockchain or decentralized protocol attempts to siphon users and liquidity off another chain. On August 13, Justin Sun posted on SunPump, a Tron-based variation of the insanely successful Pump.fun on Solana.
Over the following days, SunPump received a staggering inflow of volume and users, and the SUN token took off.
Additionally, TRX price (red) began to surge, surpassing Cardano (ADA) and Ton (TON), while Solana price (blue), on the other hand, began to decline.
Solana suffered not only in price but also in terms of users, volume, and fees. According to data from Dune Analytics, Solana total fees and Jito tips are down more than 50% since Justin Sun copied Pumpfun on Tron.
It has also been noted that most of the fees generated on Solana are priority fees or MEV tips. That means that if the Solana ‘degens’ move to Tron, the network revenue from priority fees and MEV tips will gravitate to $0.
For context, Solana had made an average of $1 million per day in revenue from fees. However, after the launch of SunPump, Solana revenue now struggles to break $500,000 daily.
Solana Price Analysis
Solana price began in September under pressure, training around $134 and losing almost 25% over August. However, technical analysis indicates that the SOL price sits comfortably inside a 187-day consolidation zone. The asset tested the lower boundary five times during that period, reinforcing its strength.
Conversely, the major resistance around $200 is relatively weak because it was only tested once. However, stronger resistance exists just below it, around $180, with another weaker one below that at $160.
Solana price prediction shows that if it can break above the immediate resistance at $160, it can surge to $180 and potentially $200. This would comprise over 50% of gains from the current price. However, if bears break the robust support at $120, SOL price may drop to $80.
Frequently Asked Questions (FAQs)
1. What is a 'vampire attack' in the crypto space?
2. How did the launch of SunPump impact Solana?
3. Can Solana recover from this downturn?
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