Outshined But Not Lifeless As Dev Activity Sees Continued Acceleration

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Solana has been extensively scrutinized since speculation linking him to bankrupt FTX emerged. The network’s perception of FTX has been drastically altered by events, and the resulting fear, uncertainty and doubt (FUD) has been challenging to dispel.

almost 9% Token value Today’s sweep, perhaps due to the exchange’s bearish decline, indicates a deepening bear market.

Additionally, cryptoslam Information It reveals that the NFT market in the ecosystem is experiencing a severe decline in trading volume and new buyers.

Also Diphylla reported SOL’s TVL has further decreased by 10%. Compared to TVL’s all-time high of $1.02 billion in November, the current value of $265.43 million represents a staggering drop of 73.46%.

Data from Maesari, However, Solana seems very much alive.


Image: The Independent

Removing security bugs

A recent coinage of Messari Report Although the environment does not have a clearly articulated road map, it specifies various activities. For example, JumpCrypto Working on a C++ client for a token’s validator called FireDancer. Due to this, the impact of errors on the Solana Blockchain will be minimized.

However, such efforts need time to germinate and grow. At this time, Solana has some security holes that need to be fixed.

Solana DeFi protocol Raydium was compromised on December 16. Investors and traders lost approximately $2 million as a result. This is expected to further reduce trust in the token.

In contrast to these neutral and negative changes, the sentiment data indicates that chain growth activity is still strong.

SOL total market cap at $4.4 billion | Chart: TradingView.com

Solana token needs more kick

The Solana ecosystem appears to be very resilient due to significant development activity and activities to improve on-chain performance. In contrast, Solana’s own coin, SOL, is a completely different ecosystem.

As of the time of writing, the token is at $11.83 and resistance at $14.98. If Bitcoin’s market performance continues to deteriorate, the increased correlation between SOL and BTC will become problematic.

Macroeconomic considerations will also play a role as the US Federal Reserve prepares to raise interest rates further.

Solana’s future looks bleak at this point. But as the situation improves, the FUD surrounding the environment may decrease. However, if the status quo is not changed, SOL may drop to $10.

The next few hours or days will be crucial for SOL’s price to consolidate or capitulate to the downside, so investors and traders should monitor the situation closely.


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