Solana: From network outages to bear run, why is SOL having such a bad time

Solana: From network outages to bear run, why is SOL having such a bad time

Touted as an “Ethereum killer” because of the transaction velocity and the scalability it gives, the Solana Network has not lived as much as its identify. The collection of outages that the blockchain has suffered in lower than a yr has introduced its claims of reliability below scrutiny from members of the cryptocurrency group.

In lower than six months, Solana has suffered over 5 important outages. The collection of downtimes on the Community has had a ripple impact on the value of its native token, SOL. 

Following the outage suffered on 1 June, the value of the SOL token nosedived from $46 to $38.5 in lower than 24 hours. The market capitalization of the token additionally suffered a drop down from $15.6 billion to $13.3 billion inside the similar window interval.

On account of the collection of downtimes on the Solana Community and the bearish outlook of the crypto market thus far this yr, the SOL token has declined by over 75%.

Taking up a downward pattern since final November, actions on worth charts revealed that the SOL token at present trades dangerously near the extent of August final yr.

Let’s check out the token’s efficiency since final November.

SOL-rowful figures 

Launched in March 2020 by the Solana Basis, the SOL token has struggled to seek out its footing in an ever aggressive cryptocurrency market. Exchanging fingers at $43.17 per SOL token at press time, the token at present trades on the lows it marked final July/August.

Value chart actions revealed that the SOL token had struggled with heading off the bears since round 16 November (yellow arrow). Making an attempt a bull run from 27 November until 2 December (pink arrow), the token has since suffered severely from the fingers of bears.

Supply: TradingView

From 2 December so far, the  SOL token has posted an 81% loss in worth.

Supply: Coinmarketcap

As well as, inside that window, the market capitalization of the SOL token has registered a 79% decline from $70.21 billion to the $14.69 which it stood at at press time.

No Place to Run to

With the guarantees of elevated transaction velocity and scalability that the Solana Community claims to supply, on-chain evaluation revealed that previously seven months, the event exercise on the community has taken a nosedive.

Growth exercise is  a key metric inside the crypto ecosystem because it assures traders {that a}  mission is severe about its enterprise proposition, will probably ship new options sooner or later and is  much less probably that the mission is simply an exit rip-off.  Within the final seven months, the event exercise on the Solana Community has fallen by 48%.

Supply: Santiment

On a social entrance, a take a look at efficiency confirmed that the SOL token struggled in March. Nonetheless since then, the social dominance and the social quantity for the token have since taken on an uptrend with occasional beatdowns.

With the plethora of downtimes suffered, a simple clarification exists for this. At press time, the social dominance stood at 2.547% whereas the social quantity was noticed at 450.

Supply: Santiment

Posted Some Good points within the Final 24 Hours

Though the SOL token has had a horrible yr, it managed to register a ten% soar in worth within the final 24 hours. Based on knowledge from Coinmarketcap, it at present ranks quantity 9 on the checklist of largest cryptocurrencies by market capitalization.

Supply: Coinmarketcap

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