Today we will analyze the once top 6 cryptocurrency and one of the growth leaders in 2021 - the SOL token. What plans, does it make sense to buy and where to fix 👇
Prehistory. Solana is a fast and very cheap blockchain where Alameda, FTX and other funds have invested. After the unlocks, the funds did not sell the token, but pumped the rate from $2 to $260. Then came the bear and the rate collapsed to $30.
And in November, the FTX exchange and the Alameda fund, the main manipulators of SOL, burst. As a result, the largest holders and backers of the project went bankrupt, which led to the depreciation of SOL to $10.
Signals that the project is dead:
🚩 TVL (money in the ecosystem) has decreased from $10 billion to $225 million. This is the lowest level since April 2021. From the main protocols, 10% -40% of liquidity is withdrawn weekly. In addition to this, the Top 3 Raydium solan protocol was recently hacked.
🚩 Top 1 wallet on Solana added support for Ethereum and Polygon blockchain. Obviously, in order to diversify the risks of working only on solan.
🚩 Top NFT collections DeGods and Y00ts will move to Ethereum and Polygon respectively in January. Apparently, the NFT sphere on the solan is coming to a close.
🚩 The number of developers on Solana decreased from 2453 to 75 people in a year. In general, there is a negative background around Solana due to its close relationship with FTX and Alameda, which used client funds for their own purposes.
From the pros:
✅ Solana has clear plans for 2023. Alex Yakovenko, CEO of Solana, told what the team will do: developing software for Solana Stack mobile devices, creating uninterrupted network operation, simplifying programming...
✅ The network is still fast and cheap. NFTs on Solan are more user-friendly than on Ethereum + low fees and a strong community. Due to the cheapness and speed on solan, an unplowed field for innovation and experimentation.
🤔Conclusion
Solana is very similar to this cycle's EOS. She also collected investments from powerful funds, also made 100+ X's and also collapsed by 96%+. Solana still has a community, developers, and even some liquidity. The network will never die.
I believe in a scenario where SOL, like EOS, will make 5-10 x from the bottom during the bull market. The question is, how much will the rate collapse before it rebounds? The rate can drop to $2 and make 5 X back to the current price.
You can try to guess the bottom and catch 5-10 x on a local steer. But also take into account the risks and manipulativeness of the asset. And if you are not ready to take risks, forget about the asset, the market is full of more interesting projects 🫡