SOL at $33, Will Solana Recover?
Will Solana Recover? Solana has fallen from its All-Time High of $259 to $33 today. 87% of its value has been wiped out in just 6 months. So the question is will Solana recover quickly and return back to all-time highs in the next few months?
Will Solana Recover? How has Solana performed versus leading Blockchains?
Some observations from the table below. In 2022,
- Whenever both Cardano and Solana have fallen, Solana has fallen more
- Whenever both Solana and Cardano have risen, Solana has risen much more.
Will Solana Recover? The Solana Blockchain metrics
- NFT Sales continue to be robust though they appeared to have slowed down this month
- TVL has been falling for months now with little recovery
- Network revenues are also down by a huge margin
On all metrics, Solana trails Ethereum by a huge margin but is ahead of Cardano.
Both Cardano and Ethereum are coming up with upgrades this month. The delayed Ethereum Merge is now due in August while the Cardano Vasil Hard Fork is due by the end of the month. However, it is unclear if these upgrades will change the market dynamic.
Will Solana Recover? The Micro and Macro problems
Solana’s repeated security and technical issues have caused immense harm to $SOL. The fact that they occur at an alarming regularity is a major risk as far as Solana is concerned.
The Macro issue has been discussed and done to death, higher rates and inflation have caused many investors to pull out of both cryptocurrencies and stocks. This is likely to continue for some time and is the single biggest factor why cryptocurrencies are struggling.
So Will Solana Recover?
Security issues aside, Solana has many things going in its favor including TVL, NFT Sales, and Network revenues. These should recover once the economy gets better. We believe Crude Oil prices should fall in August or later which is when Solana should benefit from increased transactions. We also believe that Solana will outperform Cardano. Cardano may be better tech but Solana is better at commercialization.
On the other hand, if Solana’s network outages continue, its chances of recovery will keep diminishing.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.