Solana is losing ground under its feet as developers are leaving network
Since Solana has been steadily losing value throughout the year and experienced an accelerated sell-off following the FTX implosion, it has earned the title punching bag of the year. The new phase of Solana’s growth still portends an impending deterioration of the project’s and the network’s current state. At the time of writing, SOL is changing hands at $9.94.
SOL/USD 4-hour chart | Source: TradingView
Solana Down 73%, and More to Come as Developers Halt All Activities on Network
Data from Santiment shows that Solana’s development activity is drastically declining due to developers no longer finding any benefits to using the network that was once dubbed an “Ethereum killer.” The current condition of the network and the coin that underpins it indicates that its total demise is more likely than a future comeback.
📉 #Solana is now down 73% in the past 8 weeks. The #FUD is strong toward the once thriving asset, but there appears to be some pretty good justification with development activity coming to a halt. Read our take on what metrics are pointing to for $SOL. 👀 https://t.co/P7AnKYfKYN
— Santiment (@santimentfeed) December 28, 2022
Following the sell-off started by Alameda, intense selling pressure from retail holders, and yet unrealized unstacked SOL that will most likely prove to be a deadly blow for the asset, the price of SOL has dropped by approximately 80% in the last eight weeks. Recently, specific NFT collections that were supposed to be a source of renewed network activity were lost by SOL. Regrettably, developers opted for networks like Polygon and Ethereum.
Without a substantial change in the project’s schedule, the future of Solana does not appear promising. It is unclear how the asset will behave in 2023. The major marketplaces, like MagicEden, are not receiving any fresh inflows, numerous massive projects are switching to alternative blockchains, and ongoing projects are pausing portions of their operations. Technically speaking, Solana also does not offer us any encouraging signs: All significant support levels have been violated, and the trading volume is incredibly low and most likely only made up of market-making activities. Solana is trading at $10 as of this writing.
- Deribit Will Cease Offering Solana INVERSE Products
- Circle Is Expanding Euro Coin To Solana In The First Half Of 2023