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Solana Down 73%, and More to Come as Developers Halt All Activities on Network

Wed, 12/28/2022 - 10:09
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Arman Shirinyan
Solana is losing ground under its feet as developers are leaving network
Solana Down 73%, and More to Come as Developers Halt All Activities on Network
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Solana earned itself the title of punching bag of the year as it has been gradually losing its value throughout the year and faced an accelerated sell-off after the FTX implosion. However, the new stage in Solana's development hints at the upcoming aggravation of the current state of the project and the network as a whole.

According to Santiment's data, Solana's development activity is plunging massively as developers are no longer seeing any advantages to using the network that used to be called an "Ethereum killer." The current state of the network and its underlying coin suggest that its complete death is closer than a potential recovery.

In the last eight weeks, the price of SOL decreased by almost 80% following the sell-off initiated by Alameda, enormous selling pressure from retail holders and yet unrealized unstacked SOL that will most likely become a fatal blow for the asset.

Recently, SOL lost a few NFT collections that should have become a source of revamped network activity. Unfortunately, developers chose alternative networks like Ethereum and Polygon.

Alameda's Ethereum (ETH) Addresses See Intense Activity

The outlook for Solana does not look good, without any fundamental shift in the project's roadmap, it is not clear how the asset will act in 2023. Numerous large projects are choosing alternative blockchains, existing projects are halting some of their operation and the biggest marketplaces like MagicEden are not seeing any new inflows.

From a technical perspective, Solana also does not show us any positivity: all major support levels have been broken, and the trading volume is at extremely low levels, most likely consisting of marketmaking operations. At press time, Solana is trading at $10.

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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.