Contents
- Sad story of Solana in 2022
- Can Solana’s situation change in 2023?
Without a doubt, 2022 has not been one of the best years for Solana (SOL). The cryptocurrency that came to the crypto market with the promise of being an “Ethereum killer” has experienced many performance difficulties over the past 12 months. But will everything be different for the altcoin in 2023?
Sad story of Solana in 2022
This year, the market has seen the price of SOL fluctuate after each outage Solana’s network has experienced. This has led to mistrust around crypto. After all, how could it be prepared to outperform the best altcoin on the market if its network isn’t working?
Although it was chosen as the preferred token after Ethereum to launch non-fungible tokens (NFTs) and blockchain games, Solana’s network proved to be unstable when heavily used. Additionally, centralization was another negative highlight, as always seen when developers crippled the SOL blockchain to fix a bug.
As if that wasn’t enough for the smart contract platform, Solana was negatively impacted by the fall of FTX and Alameda Research. The Sam Bankman-Fried (SBF) companies have been instrumental in Solana’s growth.
SBF, in addition to being a big crypto advocate claiming Solana is an underrated altcoin, helped Alameda acquire $1.2 billion on SOL.
At the time of writing, the bankrupt trading company owns 48.6 million units of the token. This figure represents 65% of all tokens in staking and 8.75% of Solana’s total assets.
All this proximity to one of the biggest scandals of 2022 knocked the cryptocurrency out of the top 10 and caused investors to lose a lot of money.
Can Solana’s situation change in 2023?
Thinking back to Solana’s history, her constant network outages were not a reason for the cryptocurrency to lose a lot of capital. Even though it corrected, its place in the top 10 by market capitalization was not lost.
Therefore, while the altcoin may still face more difficulties until it has a 100% functioning blockchain, this may not be a bearish catalyst for it.
Another plus point of Solana is that it has a growing number of active developers. This proves that his network is no slouch, even if investors are wary of Alameda’s next steps.
A fast blockchain, when not failing, with low transaction fees, an accessible language for building smart contracts, and a good volume of development may show that Solana still has hope.
However, by 2023, the altcoin will have to engage in new blockchain industry modalities and repair its network.
In addition to having strong competitors such as Cardano (ADA) and Polkadot (DOT), investors should be much more discerning next year. With the fall of NFTs, Solana’s main strength, the need to reinvent itself, is necessary so that it does not fall into the crypto graveyard.
Solana entered an important zone of reversal risk by breaking an all-time high of $260 in 2021 and reached the last month of 2022 by trading below the $15 mark.
Managing to grow in a way that minimizes pressure from Alameda-held tokens, Solana could be the cryptocurrency to watch in 2023.
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