In the vast cryptocurrency market, bears still prevail and the price of Bitcoin fell to around 27,000 over the weekend. USD, while ETH is only $1,450. The main assets are also followed by Solana (SOL) whose price continues its downward trend and tends towards 30 USD. What is driving the current declines and does SOL have a chance to rebound?
In the article you will learn, among other things:
However, Solana will not replace ETH?
Solana is an innovative blockchain project launched in 2020, which after its launch broke into the group of the largest cryptocurrencies. Currently, Solana is the ninth largest cryptocurrency by market capitalization with a market value of $11 billion.
Solana is also the most efficient blockchain in the world, processing over 2,500 transactions per second (tps), while ETH can only handle 15 transactions at a time. Moreover, the maximum capacity of the SOL network is 50,000. tps, and with its development, this number should systematically increase.
However, this is not enough to protect the cryptocurrency from severe losses which spare no project in the vast decentralized finance market.
Additionally, despite its impressive performance, Solana’s blockchain is prone to network outages. In March and April 2022, Solana experienced nine such outages, seven of which were classified as “serious”, clearly alarming investors.
In January, the blockchain has been plagued with disruptions and degraded performance for nine out of 31 days this month. Duplicate transactions were blamed for the January 2 failure. In late April and early May, Solana again stopped working for almost eight hours due to bots to create insecure tokens overloading the network.
Mainnet beta validators: please follow the reboot instructions linked below and upgrade 1.9.x to 1.9.28 – If you are on 1.10.x, please upgrade to 1.10.23 https://t.co /gBAOPrpnNe
– Solana Status (@SolanaStatus) June 1, 2022
Additionally, Solana’s blockchain clock is slow and about 30 minutes behind the real time.
While this does not impact network performance or performance, it may impact annual staking rewards.
The latest problems were experienced by the network on June 1, 2022 at 6:55 p.m. Polish time, during the fifth outage this year, which lasted about 4.5 hours. This time the culprit was a consensual failure, as a result of which the production of new blocks was halted.
Solana continues to decline
From the start of the year, SOL quotations fell by more than 76%, thus bringing the range of the sale, which began on November 8, 2021, to more than 85%.
After a mixed first few months of the year, the SOL/USD price has been on a downtrend since early April, overvaluing itself in just 3 months from $140 in early April to around $30 currently observed. Although during this period there have been several tests of the downtrend line, the lingering sentiment in the market is effectively preventing the bulls from any strong rebound.
Fear over deteriorating earnings still dominates the market, and the Fear & Greed index reading of 14 only confirms very weak crypto market sentiment and fears of further declines.
SOLANA Future Price Predictions
Technical analysis from the CoinCodex website shows unmistakable bear dominance, with 27 indicators predicting declines and only 2 predicting increases.
However, WalletInvestor’s algorithm-based predictions estimate that in 2022 the coin could reach a price of up to $148,863. Longer term, forecasts have shown that quotes will reach $240 by the end of 2023, $330 by the end of 2024 and $421 by the end of 2025. In five years, according to the platform , the price of the coin could reach $497,385.
DigitalCoinPrice predicts a much slower rate of growth, based on historical data, indicates that the price could average $55.29 in 2023, from $50.87 in 2022, rising to $61.10 in 2024. 74 $.47 in 2025 and $177.81 in 2030
CoinPriceForecast’s SOL coin price predictions also predicted a slower upward trajectory. Predictions showed the coin could drop to $45.17 by the end of 2023 from $47.98 in 2022, then rally to $71.14 by the end of 2025 and $105.36 from by the end of 2030.
The Price Prediction SOL estimated that the price of the cryptocurrency could rise from an average of $61.46 in 2022 to $88.44 in 2023 and $179.57 in 2025, then accelerate to 1,208.77 $ in 2030 r., based on in-depth technical analysis supported by artificial intelligence analysis.
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