In an era where most cryptocurrencies are gaining traction, Solana (SOL) is giving in in a unique way since it seems to be defying the trend. As of this writing, the coin’s price is $61.30, having decreased by 5.59% during the previous four hours. Despite the dismal daily forecast, Solana has maintained an overall growth rate of about 9% for the week.
Solana billed for more, here’s why
Day traders may be disturbed by Solana’s price decline since, in the long run, the $61 price point may be seen as an excellent deal given the protocol’s optimistic growth forecast that many have expressed.
The network growth of Solana is one of three important variables that will eventually drive up the price of the product. It may be said that the blockchain protocol is about to enter airdrop season because a lot of the Solana projects are ready for general release. One may argue that this is the result of the Grizzlython that was held earlier in the year.
A significant part of Solana’s rebirth is also anticipated to come from its retail and whale effect. Although there are some minor challenges ahead, institutional capital inflow and retail buy-up demonstrate that demand is still high as seen by the 37% increase in trading volume to $2,070,760,055.
Lastly, given the overall market outlook, this will undoubtedly have an impact on Solana. The excitement around the approval of the Bitcoin spot ETF might be positive for Solana in the long run.
Solana tradeoffs on horizon
It’s arguable that Solana is no longer affected by the fallout from the FTX Derivatives Exchange and the false information that followed.
The only remaining trade-off that might accelerate SOL’s long-term development is the probable liquidation that FTX will carry out in an effort to conclude its bankruptcy proceedings. However, Solana’s advantages exceed its disadvantages, increasing the likelihood that its expansion will accelerate in the near future.
