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Here's Why Solana Can Make Big Comeback on Crypto Market

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Wed, 06/22/2022 - 12:43
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Arman Shirinyan
While Solana faces heap of criticism lately, it still has some potential on market
Here's Why Solana Can Make Big Comeback on Crypto Market
Cover image via stock.adobe.com

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The first half of 2022 was not the best period for Solana as the project faced several technical issues, including constant downtimes, degraded the performance of the blockchain and other minor problems that decreased the efficiency of the network.

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 of "killing Ethereum" had in the first half of 2022, notable cryptocurrency traders and investors believe that it still has some 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.

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As more funds got rid of their SOL holdings, no new VCs seem to have an interest in the "Ethereum killer," which makes its distribution on 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 sharp downtrend despite the positive price performance it has shown lately.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.