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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.
SOLUSD outperforming its beta post crash. Possibly
— light (@lightcrypto) June 21, 2022
1. not pressured by collateral-related force selling hitting BTC
2. Newly raised VC funds focused on darlings
3. Market assuming the existence of a Sam put
All this under the surface, coverage focused on Solend sideshow pic.twitter.com/Tilfv9u4L8
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.
Arman ShirinyanAs 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.
Tomiwabold Olajide
Denys Serhiichuk
Dan Burgin
U.Today Editorial Team
Vladislav Sopov