Solana got here underneath intensive scrutiny after speculations associated to the chapter of FTX emerged. , which proved tough to dispel doubt (FUD).
Virtually 9% of the token worth was worn out at this time. That is most likely the impact of the trade’s decline, which signifies that the bear market is deepening.
Moreover, CryptoSlam knowledge reveals a big drop in transaction quantity and new consumers within the NFT market throughout the ecosystem.
DeFiLlama additionally reported an extra 10% discount in TVL for SOL. In comparison with TVL’s all-time excessive of $1.02 billion in November, its present worth of $265.43 million represents a staggering drop of 73.46%.
However Messari’s knowledge present that Solana may be very a lot alive.
Picture: The Unbiased
take away safety bugs
Messari’s newest coin report paperwork a variety of exercise with out a clear roadmap for the ecosystem. For instance, JumpCrypto is engaged on her C++ shopper for a token validator referred to as Firedancer. This reduces the influence of bugs on the Solana blockchain.
However such efforts take time to germinate and develop. Solana presently has some safety holes that want fixing.
The Solana DeFi protocol Raydium was compromised on December sixteenth. Buyers and merchants misplaced about $2 million. That is anticipated to additional cut back belief in tokens.
In distinction to those impartial and detrimental adjustments, Santiment’s knowledge reveals that on-chain improvement exercise stays very robust.
SOL whole market cap at $4.4 billion | Chart: TradingView.com
Solana Token Wants Extra Kicks
The Solana ecosystem seems to be very resilient with important improvement exercise and on-chain efficiency enchancment work. In distinction, Solana’s native coin SOL stands in stark distinction to the ecosystem.
On the time of writing, the token has assist at $11.83 and resistance at $14.98. The growing hyperlink between SOL and BTC might turn into an issue if Bitcoin’s market efficiency continues to deteriorate.
Macroeconomic concerns may also play a job because the US Federal Reserve gears up for additional charge hikes.
Solana’s future appears to be like bleak for now. However hopefully, as issues enhance, her FUD across the ecosystem could diminish. Nonetheless, if the established order doesn’t change, SOL might fall to $10.
The subsequent few hours or days will likely be key for SOL value correction or capitulation to lows, so traders and merchants ought to actively monitor the state of affairs.
