While Solana faces heap of criticism lately, it still has some potential on market
The first half of 2022 has not been the best time for Solana as the project has faced several technical issues including constant downtime, degraded performance blockchain and other minor issues that diminished network efficiency.
With the technical issues present almost all the time on Solana, investors decided to slowly drop the support for the network, especially after the DeFi and NFT industries have lost more than half of their capitalization and saw no inflows since a major portion of Solana’s revenue was provided by these industries.
But despite all the problems the project with the potential to “kill Ethereum” had in the first half of 2022, notable cryptocurrency traders and investors believe it still has potential in the future.
The main factor that could give Solana a second breath is the absence of the selling pressure provided by collateral-related positions, in contrast to Ethereum, which faced massive selling volumes in recent days.
As more and more funds have dumped their SOL holdings, no new VCs seem to be interested in the “Ethereum killer”, making its distribution in the market relatively healthier.
Nevertheless, it is important to note that Solana is still an extremely risky and questionable network, especially after the whole decentralization principle of the network was suspicious following the Solend scandal where the platform based on the network took control of the user’s wallet and liquidated his or her position by force.
At press time, Solana is trading at $35.5 and remains in the strong downtrend despite the positive price performance it has shown recently.
