In 2023, Solana (CRYPTO: SOL) soared in value by more than 900%, making it one of the top-performing major cryptocurrencies. But it's been an entirely different story in 2024. Solana is up a meager 2% for the year, and seems to have stalled out around the $100 price level.

This could simply be a case of Solana overheating, and investors needing time to pause and regroup after a scorching rally last year. Or it could be an early warning signal of deeper problems at Solana. Let's take a closer look.

Three major factors appear to be weighing on Solana right now. One is related to the recent launch of the spot Bitcoin (CRYPTO: BTC) ETFs. Given all the buzz and hype surrounding this launch, investors were focused almost entirely on Bitcoin in January. Any investment dollars that once might have flowed to Solana were now going almost entirely to Bitcoin. At one point in mid-January, 98% of all institutional money was going to Bitcoin.

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Source Fool.com