Solana Sees Its Most Negative Sentiment in Months, But There’s a Catch

Reason for negative sentiment is not farfetched

Recent analysis by on-chain analytics firm sentiment Indicates that Solana is currently being written off as it sees its most negative sentiment in months. The reason for the negative sentiment is not far-fetched as Solana is down 87% from its all-time high of $259 achieved in November last year.

🤔 Throughout the year, opinions on where prices will be heading next have been all over the place, depending on which #altcoin is the subject of focus. Our latest insight touches on the greed and fear happening toward $UNI, $SOL, $GRT, $BNB, $TRX, & $HEX. https://t.co/jFp4dkeKzR pic.twitter.com/gwCNPZSNW4

— Santiment (@santimentfeed) October 6, 2022

Solana, just like every other cryptocurrency, has underperformed this year, being down 78.3% in 2022 so far. At the time of publication, SOL, the native asset of the Solana blockchain, was trading at $33.38, down 1.9% in the last 24 hours, according to CoinGecko data.

Sentiment noted that negative sentiment towards SOL has returned to end-July levels, but the market has yet to react, making Solana one worth keeping an eye on. This raised a hope in Solana’s current situation: “But with so much FUD, this can be considered a positive sign.”

The Solana blockchain is back up and running after last weekend’s glitch, the latest in a string of crypto network outages that have occurred in less than a year. As a result of a misconfigured node within the system, validators were unable to process blocks, and Solana’s network experienced another outage.

This isn’t the first time a glitch has temporarily shut down Solana’s network. The support system for the digital asset experienced a four-hour outage in June. The blackout and 18-hour-long service problems in January angered traders, who saw the value of their portfolios plummeting when they were unable to sell their tokens.

Solana heavily criticized

Both during and after the downtime, Solana was subject to harsh criticism from the cryptocurrency community. Founder and CIO of CyberCapital, Justin Bons, harshly slammed Solana on Twitter, outlining a history of outages, setbacks, hacks and scandals.

Nevertheless, the Solana NFT ecosystem is slowly expanding, despite a string of unfortunate events. In September, the NFT market on Solana grew to a market share of 24%. Transactions valued at over $135 million were made during the month, with MagicEden leading the market with over 90% volume.