Despite recent turbulence, Solana (SOL) remains a top-10 asset by market cap in the crypto industry. It continues to be seen as an Ethereum killer by some of its users, which has helped to maintain trust in the platform. As of the start of 2023, SOL was hovering around the $10 mark. However, the recent shift towards bullish sentiments and Bitcoin starting to climb past $17k has allowed Solana to benefit greatly, recording gains of 175% in 21 days.
While the recent SEC lawsuit against Binance has caused concern for several altcoins, including Solana, the network’s degree of decentralization is proving to be an advantage. Messari’s recent report found that Solana’s Proof-of-stake (PoS) network, with an aggregate Nakamoto coefficient of 1.9, has outperformed its peers.
There are mixed views on Solana’s future trajectory, with some predicting a bullish scenario of $75.5 while others see SOL valued at $25. Interestingly, chatbot ChatGPT seems to think that Solana will be an Ethereum killer based on transaction fees and transaction speeds.
However, concerns have been raised surrounding Solana’s reputation after Sam Bankman-Fried, CEO of FTX and former vocal proponent of the Solana network, was charged with defrauding FTX equity investors. The Solana foundation also recently sold a significant amount of SOL to FTX Trading and Alameda Research, which led to a drop in the token’s price in November.
Despite these setbacks, Solana has continued to develop multiple fronts such as Solana Saga, the NFT market, and partnerships. However, recent network outages and low investor confidence will likely impact Solana’s short-term prospects, with a current value of $15.56 and a market cap of $5.9 billion.
Investors in Solana must remain cautious and temper their expectations. While SOL may have experienced a New Year’s sale, it is unclear when the crypto industry will enter a bull market, and therefore investors should ensure they have realistic expectations for SOL’s future trajectory.
