Solana has been in free fall since the collapse of FTX. Also, due to the FUD surrounding the ecosystem and its links with the old crypto exchange, the altcoin is unable to move upwards. This raises concerns about Solana’s ability to move on with her life.
Solana: Is he dead or not?
cryptocoin.com As you follow, Solana (SOL) has experienced serious depreciation since the day FTX collapsed. Probably, the current situation is quite confusing for investors. Because, on the last day of the year, the altcoin is up 5.4% on a daily basis. This was perceived as a sign of a reversal in investor sentiment. However, FUD still remains strong around the ecosystem itself.
Messari published an overview of the ecosystem on December 15. The gist of the overview was that Solana was still a solid ecosystem, even after the stock market crash led by Sam Bankman-Fried. However, the latest Santiment prediction about the ecosystem shows that the ecosystem is already dead. The most notable on-chain development for the altcoin was the significant decrease in developer activity despite many projects being developed on the ecosystem. It’s hard to say whether Solana as a whole is dead or alive. However, it’s easier to say that the ecosystem is struggling to survive due to its close ties to FTX.
What does this mean for altcoin investors?
The crypto community is currently pretty bearish considering what has happened over the past few weeks, including multiple layoffs and bankruptcies of major crypto firms, courtesy of some key macroeconomic news.
Those who expect bullish for the ecosystem point to ETH’s collapse in 2018 and how SOL’s move mimicked that. Saying that he is a crypto expert, MANDO CT says in a tweet:
For anyone selling ETH for $88 in 2018 and anyone selling SOL for under $10! The fundamentals have not changed and Solana is not FTX!
The claim that Solana was blown up only with the help of Bankman-Fried’s black money has been widely voiced in the market. However, Solana supporters are trying to refute this claim with documents showing that the SBF supports Solana’s opponents.
However, SOL’s price action reflects investor sentiment on the token. Fear, uncertainty and doubt (FUD) dominate this sensitivity.
- They fear that the ecosystem will inevitably follow the path of FTX.
- There is uncertainty about what 2023 will bring to Solana.
- Despite the amount of projects being worked on, there is doubt about the ecosystem.
However, there are also some big improvements like Solana Pay. They will also be launching their own mobile phones soon. So we can see that 2023 is an important part of Solana’s recovery or another catalyst for its decline.