Having recently (within the last week) bought Solana, I was surprised to see that it has gone down a fair bit since May 20th. Let's look at the chart (thank you CoinGecko):

While the decline, over the last 24h, is around 2%, and we've had much worse in the past, it still does bear thinking about, because it is significant. From hereon it's going to be speculation (see what I think of experts here). 

Solana had been riding high and a correction was due. However, Solana is one of the more stable coins and we have to dig deeper. If we look at the total locked value of Solana, it has dropped quite significantly this May. Over the last month the TVL has reduced by a staggering 2 million Solanas (from a total of 30 million --- all numbers are approximate). Or is the ETH ETF approval driving SOL prices down, as these are "rival" coins?

We may find a clue in the SOL/ETH chart. Let's take a look at that (credit to CoinGecko again)

That looks rather alarming, if you are holding SOL. From about May 21st SOL seems to have become a lot weaker. So to answer the question in my heading, the answer seems to be two fold.

• Yes, there is a natural correction going on
• But the more likely explanation is the approval of ETH spot ETFs, which might have led to an outflow of funds in the Solana space, to the Ethereum space.

What should I do? I don't see any reason to panic over my Solana holdings. It is a coin with trusted fundamentals, and has shown resilience (think FTX) in the past. In fact, since I trade trend, I will wait for the curve to start going up, and when it reaches my pre-determined price on the up, will add some more.

Disclaimer: This article (by me, Rumjus) is for informational purposes only. It is based on my personal (and anecdotal) experience. None of the content is financial advice. Readers are strongly advised to conduct their research, exercise judgment, and be aware of the inherent risks with crypto currency (and any other) investments. I am not liable for any Hafinancial losses you incur. Cryptocurrency markets are highly volatile and the possibility of investments tanking is higher than traditional investment instruments. The cryptocurrency space is also riddled with scams and actors with nefarious intent, so the possibility of losing your money is very real.I am not liable for any loss you may suffer.