- Analyze the good and bad sides of the Solana network in 2022
- Why investors should consider a different strategy for SOL
Investor interest in Solana’s native cryptocurrency, SOL, has slowed in recent months. It is not only because of the bearish market conditions, but also because of the network down incidents and FTX woes. Although these factors have eroded interest in the cryptocurrency, its current discount is quite attractive.
Lily Solana (SOL) Price Prediction 2023-24
While SOL’s discounted price is attractive, there’s no getting around the eroded trust. As a result, the cryptocurrency has barely gained enough bullish momentum for a significant rally since June. This highlights why SOL may not be the ideal cryptocurrency for investors looking for a big price pump on the next bullish wave.
One of the factors that fueled Solana’s initial hype in 2021 was the hope that he would be an “Ethereum killer”. Fast forward to now, and the result hasn’t lived up to expectations. However, all is not gloomy.
There is still hope for SOL
Solana has certainly not done well this year, but there are aspects that show why her community remains hopeful. It has maintained a healthy development activity and continues to focus on long-term development.
The measure of development activity confirms that network developers have been busy building. According to recent updates, some aspects of the network have seen positive growth since the start of the year. For example, the maximum number of transactions per second has increased since the beginning of the year.
The number of daily transactions is another area where Solana has achieved growth this year. There has been healthy growth in the number of successful vote transactions. This confirms that the Solana community has been more actively involved in issues related to governance.
It also maintained remarkable levels of vote-related transactions throughout the year, confirming the good utility of the network.
Solana’s NFT segment was particularly affected during the year, as evidenced by the total number of NFT transactions and the total volume of NFT transactions. Despite this, Solana maintained a significant amount of NFT trading activity.
A change of tactics
The fact that Solana has achieved growth in certain aspects of its network is heartening for investors. However, investors still need to consider the negatives and what this means for the network, as well as the price development of SOL.
Solana’s misfortunes have already dampened the mood, but he is currently trading at a discount. Moreover, his last price action confirmed that there is a return of bullish demand.
Whereas bullish demand is a positive sign for investors, a different strategy may be required. Adding it to a diversified portfolio certainly wouldn’t hurt, instead of doing it all on SOL.