Skip to main content

Solana Continues Its Freefall – Will The FUD Ever Stop?

Solana has been on a freefall since the collapse of FTX and has not been able to move upwards because of the FUD (fear, uncertainty and doubt) surrounding the ecosystem and its connections with the former crypto exchange.

According to recent news, Solana’s native token SOL has dropped 51.14% since the day FTX fell from grace. 

Solana: Dead Or Not Dead? 

The current situation might be confusing to investors. Based on data by CoinGeko, the token shot up by 5.4% in the past 24 hours which might be a signal that investor sentiment is reversing. However, the FUD still remains strong around the ecosystem itself. 

Messari released an overview of the ecosystem back on December 15. The basic gist of the overview was that Solana is still a solid ecosystem even after the collapse of the Sam Bankman-Fried-led exchange.

However, recent Santiment insight on the ecosystem shows that it might be already dead. 

The most notable on-chain development for the token was the significant drop in developer activity despite a lot of projects being developed on the ecosystem.

Although it is difficult to say whether Solana as a whole is dead or near it, it is easier to say that the ecosystem is struggling to keep itself afloat because of its close ties with FTX. 

What This Means For Holders Of SOL

The crypto community seems to be very bearish at the moment considering what transpired in the past weeks courtesy of some major macroeconomics news, including the spate of job cuts and bankruptcies by big crypto firms.

Those who are bullish for the ecosystem point to ETH’s crash back in 2018 and how SOL’s movement mimics this. 

MANDO CT, a self-declared crypto expert, said the above on his pinned tweet.

Others try to refute the claim that Solana only blew up with the help of Bankman-Fried’s dirty money with documents which show SBF supporting competitors of Solana. 

However, SOL’s price movement reflects investor sentiment on the token itself – fear, uncertainty, and doubt:

  • fear that the ecosystem would inevitably follow the path of FTX.
  • uncertainty on what 2023 will bring for Solana.
  • doubt regarding the ecosystem despite the amount of projects being worked on top of it. 

However, with several big developments like Solana Pay and the nearing launch of its own mobile phones, we might see 2023 to become a crucial part of Solana’s recovery, or a further catalyst of its downfall. 

–

Featured image: Cryptopolitan



from NewsBTC https://ift.tt/PWqbOpr
via IFTTT
Labels:

Comments

Post a Comment

Any questions, Please.

Popular posts from this blog

TA: Ethereum Remains Strong, Why ETH Could Rally Above $2.3K

Ethereum is trading in a positive zone above the $2,150 support zone the 100 hourly SMA against the US Dollar. ETH price is likely to rally if there is a clear break above $2,300. Ethereum is trading in a positive zone above the $2,100 and $2,150 support levels. The price is now trading above $2,100 and the 100 hourly simple moving average. There is a key bullish trend line forming with support near $2,140 on the hourly chart of ETH/USD (data feed via Kraken). The pair start a fresh rally above $2,300 as long as it is above the $2,000 support zone. Ethereum Price Is Showing Positive Signs After forming a base above $2,000, ethereum started a steady increase . ETH broke the $2,200 resistance zone and it settled nicely above the 100 hourly simple moving average. The price even spiked above the $2,250 resistance level. However, the price seems to be struggling to gain pace above $2,250, similar to bitcoin . A high is formed near $2,285 and ether is now correcting lower. There was...
Post a Comment
Read more

I Stand By My $100,000 Bitcoin Price Target, Anthony Scaramucci

Anthony Scaramucci has again reiterated his stand on why he thinks bitcoin will still hit the $100,000 price target he had earlier set. Scaramucci had put forth this forecast when he was on Yahoo! Finance earlier in the year. The founder explained that bitcoin could easily be trading at $100,000 in 12 months. Anthony Scaramucci who founded Skybridge Capital in 2005 has not always been bullish on bitcoin. But has slowly come around over the years and has now gotten into bitcoin. The CEO believes that more and more funds will get into bitcoin as time passes. His message to other money managers had been that he believed the performance of their funds will eventually be benched off of bitcoin. Related Reading |  Bitcoin Whale Warns Of “November 2018 Vibes.” What This Means Scaramucci took this one step further when he founded the Skybridge Bitcoin Fund early this year. An institutional-grade fund that was created specifically to invest in bitcoin, which it considers to be the larg...
Post a Comment
Read more

SubQuery raises $9M for Polkadot data protocol

Blockchain venture capitalists continue to fund Polkadot projects with growing conviction. SubQuery aims to bring data indexing infrastructure to the network. Decentralized data aggregator SubQuery has concluded a $9 million funding round to build Polkadot’s first data aggregation layer, a move that could strengthen data indexing for the emerging interoperability network. The investment funds will be used to continue building SubQuery’s data indexing infrastructure for all Polkadot and Kusama applications, the company announced Wednesday. SubQuery also announced the investment would help it expand its technical abilities and support the open-sourcing of its software. This investment round was co-led by Arrington XRP Capital, Digital Currency Group and Stratos Technologies with additional participation from Hypersphere Ventures, NGC Ventures, Wintermute and Skynet Trading. Previously, SubQuery successfully raised $1.8 million in a private seed round that concluded in March of this y...
Post a Comment
Read more