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Solana Sees Its Most Negative Sentiment in Months, But There's a Catch

Fri, 10/07/2022 - 10:15
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Tomiwabold Olajide
Reason for negative sentiment is not farfetched
Solana Sees Its Most Negative Sentiment in Months, But There's a Catch
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A recent analysis from on-chain analytics firm Santiment indicates that Solana is currently being written off as it sees its most negative sentiment in months. The reason for the negative sentiment is not farfetched as Solana remains down 87% from its all-time high of $259, attained in November last year.

Solana, just like every other cryptocurrency, has underperformed this year, being down 78.3% in 2022 so far. At the time of publication, SOL, the native asset of the Solana blockchain, was trading at $33.38, down 1.9% in the last 24 hours, according to CoinGecko data.

Santiment notes that while negative sentiment toward SOL has returned to late July levels, there has not yet been much of a market reaction, making Solana worth keeping an eye on. It pointed out a silver lining in Solana's present situation: "But with this much FUD, it can be considered a positive sign."

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Solana Million-dollar Liquidation Poses Threat to Price: Details

The Solana blockchain is back up and running after last weekend's glitch, the latest in a string of crypto network outages that have occurred in less than a year. As a result of a misconfigured node within the system, validators were unable to process blocks, and Solana's network experienced another outage.

This is not the first time a glitch has briefly shut down Solana's network. The support system for the digital asset experienced a four-hour outage in June. Blackouts and service problems that lasted as long as 18 hours in January infuriated traders, who watched the value of their portfolios fall while unable to sell their tokens.

Solana heavily criticized

Both during and after the downtime, Solana was subject to harsh criticism from the cryptocurrency community. Founder and CIO of CyberCapital, Justin Bons, harshly slammed Solana on Twitter, outlining a history of outages, setbacks, hacks and scandals.

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Solana Sees Enormous Whale Trading Volumes in Last 24 Hours

Nevertheless, despite a string of unfortunate events, the Solana NFT ecosystem has been slowly expanding. In September, the NFT market on Solana increased to a market share of 24%. Over $135 million worth of transactions were made during the month, with MagicEden leading the market with over 90% of the volume.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.