Bitcoin price has experienced a correction in the last few days, down from its high above $70,000 in early March 2024.
Currently (Wednesday, March 20, 2024), the price of BTC fell at $62,151.32 with a downward graph over the last 7 days of around 14.88 %.
Previously, BTC had dropped to $65,000 at the weekend, Bitcoin price recovered slightly and ranged around $67,000-68,000.
This correction is normal in the volatile crypto asset market, and several factors are believed to be the cause.
Factors Triggering Corrections
- Profit taking: Investors who bought Bitcoin at a lower price may choose to sell it when the price rises, to realize their profits.
- Macroeconomic uncertainty: Concerns about inflation and rising central bank interest rates may make investors more cautious about investing in risky assets such as Bitcoin.
- Regulatory tightening: Some countries are considering stricter regulations for crypto assets, which could suppress demand and prices.
Correction Impact
Bitcoin price corrections can impact several parties:
- Investor: Investors who buy Bitcoin at high prices may experience losses.
- Miner: Bitcoin miners may experience a decrease in income as the value of Bitcoin falls.
- Companies that accept Bitcoin: Companies that accept Bitcoin as payment may experience a decrease in revenue.
How Do BTC Competitors Chart?
Among the top 6 crypto assets by market capitalization, only Solana (SOL) achieved positive gains in the last 24 hours. Dogecoin saw the biggest drop, at 6%, while BNB, ADA, etc. all down about 3%.
Also read: What is Runestone? Innovating the NFT World with a Giant Airdrop on Bitcoin Ordinals
Why is the Solana (SOL) Ecosystem Strengthening?
Based on traffic, the Solana ecosystem and the meme token The Book of Meme (BOME) built on Solana are the most popular tokens in recent days.
Ecosystem market value Solana jumped 45% in seven days, topping $200 for the first time since December 2021, although still below its high of $259.96 in November 2021.
Apart from that, Jupiter (JUP) also succeeded in increasing the popularity of the Solana (SOL) ecosystem with a percentage increase of 37.26% in the last 7 days.
The success of the JUP token was followed by Book of Meme (BOME) with an increase of 1294.54% this week with Circulating supply reaching 55,199,727,655 BOME.
The Solana ecosystem has the potential to overtake Bitcoin in the ranking of the largest crypto assets, but it will not be without challenges.
Also read: SLERF (SLERF) Shocking Crypto: Market Value $600 Million,This Meme Coin Crushes BTC Competitors?
Advantages of Solana
- Scalability: Solana has higher transaction speeds than Bitcoin, with the ability to process up to 50,000 transactions per second.
- Transaction Fees: Transaction fees on Solana are much cheaper than Bitcoin.
- Developer Support: Solana has an active and rapidly growing developer community.
- DeFi Ecosystem: Solana has a rapidly growing DeFi ecosystem, with many innovative projects.
Solana Challenge
- Security: Solana has experienced several hacks, raising questions about its security.
- Centralization: Solana has been criticized for being too centralized, compared to the more decentralized Bitcoin.
- Volatility: The crypto asset market is highly volatile, and Solana is no exception.
Conclusion
The Solana ecosystem has great potential to develop and overtake Bitcoin in the ranking of the largest crypto assets.
However, Solana needs to overcome several challenges, such as security and centralization, to achieve this goal.
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See more: Cryptocurrency Prices and Market Cap
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