Solana
Solana Co-Founder Issues Warning Following Summer Crypto Trading Lull
As the crypto market enters the typical summer lull, industry leaders are expressing concerns and calling for action. This includes Solana (SOL) co-founder Raj Gokal. In a recent article on X, Gokal highlighted several crypto projects that entered this crypto summer, but did little good for people. Therefore, he advised people to choose Solana.
Solana Co-Founder Warns Community Ahead of Summer Crypto Trading Lull
On X, Kaiko, a crypto analytics company, highlighted the seasonal decline in trading activity. They noted that “the third quarter saw the lowest volume by far,” with Bitcoin trading volume historically dropping more than 40% compared to the highest volume quarters. Additionally, this trend was visualized in a chart showing cumulative Bitcoin trading volumes since 2012. It included BTC trading volume of $4.42 trillion in Q1, $3.676 billion in Q2 and a significant decline to $2,625 billion in the third quarter.
Against the backdrop of the summer lull in cryptocurrencies, Gokal informed the community about the choices they face during this period. Gokal’s post, posted on
Additionally, Gokal developed the concept of a “manufactured summer,” warning against several industrial practices that could mislead or harm the community. Additionally, the Solana founder criticized “infrastructure white paper tokens requested by no builder.”
Additionally, he criticized the efforts of “multi-billion dollar KOL marketing machines to dress up multisigs.” Additionally, Gokal’s criticism extended to the “timing of partnerships paid by L1 until their lock-in period expires.” THE Solana Pioneer also highlighted “community first” projects that entered the retail market with an inflated fully diluted valuation (FDV) of $10 billion.
His pointed remarks reflect a broader concern within the crypto space regarding authenticity and true advancement of technology versus market manipulation and superficial projects. This warning comes at a time when the industry is particularly vulnerable to these problems.
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Why is caution important during the summer trading lull?
The summer lull in crypto trading is a phenomenon observed in cryptocurrency markets during the summer months, typically extending from June to August. During this period, commercial activity tends to slow down compared to other times of the year. Several factors contribute to this lull.
First, the summer season often coincides with traditional holiday periods, leading to a decrease in trading volume as traders take time off. Additionally, many traders and investors may choose to withdraw from the markets during this time, preferring to take advantage of summer activities. Therefore, this reduced participation may lead to decreased liquidity and reduced price movements.
Additionally, market volatility often decreases during the summer months. With fewer major announcements, regulatory developments or significant market events, there may be fewer catalysts driving price fluctuations. As a result, prices may stabilize and trading ranges may narrow. This leads to a “boring” business environment in the crypto market.
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