Will Solana Recover in 2022? Solana has fallen from its All-Time High of $259 to below $40 in 7 months. Since January 2022, nearly 80% of the value of Solana has been wiped off. A question remains, will Solana recover in 2022?
Will Solana Recover in 2022? How has Solana performed versus leading Blockchains?
Some observations from the table below. In 2022,
- Whenever both Cardano and Solana have fallen, Solana has fallen more
- Whenever both Solana and Cardano have risen, Solana has risen much more.
Will Solana Recover? The Solana Blockchain metrics
On all metrics, Solana trails Ethereum by a huge margin but is ahead of Cardano.
Both Cardano and Ethereum are coming up with upgrades this month. The delayed Ethereum Merge is now due in August while the Cardano Vasil Hard Fork is due by the end of the month. However, it is unclear if these upgrades will change the market dynamic.
Will Solana Recover? The Micro and Macro problems
Solana’s repeated security and technical issues have caused immense harm to $SOL. The fact that they occur at an alarming regularity is a major risk as far as Solana is concerned.
The Macro issue has been discussed and done to death, higher rates and inflation have caused many investors to pull out of both cryptocurrencies and stocks. This is likely to continue for some time and is the single biggest factor why cryptocurrencies are struggling.
So Will Solana Recover in 2022?
Security issues aside, Solana has many things going in its favor including TVL, NFT Sales, and Network revenues. These should recover once the economy gets better. We believe Crude Oil prices should fall in August or later which is when Solana should benefit from increased transactions. We also believe that Solana will outperform Cardano. Cardano may be better tech but Solana is better at commercialization.
On the other hand, if Solana’s network outages continue, its chances of recovery will keep diminishing. As per the Solana Price Prediction for 2022 end, the price of Solana is set to remain below $50 if the current momentum remains. Even by 2025 not much progress is expected if there is no improvement in the market condition.
However, as we have noticed in the past, Solana has been the quickest to recover. Therefore, once the market condition improves, Solana is expected to rise higher. But it is very much unlikely for Solana to hit its 2021 ATH in 2022.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.