On Monday (14 November 2022), a very popular crypto analyst looked at $SOL’s price action, and explained why $SOL’s price crash during the past 10 days could be “healthy for the ecosystem longer term.”
$SOL’s price has really suffered in the wake of the collapse of the FTX empire and the fall from grace of FTX Co-Founder and former CEO Sam Bankman-Fried (aka “SBF”), who announced on 11 November 202 that he had filed “FTX, FTX US, and Alameda for voluntary Chapter 11 proceedings in the US.”
As you can see from the price chart below by TradingView, on 5 November 2022, $SOL was trading as high as $37.71 and currently (as of 11:46 a.m. UTC on 15 November 2022), $SOL is trading around $14.54, which is a fall of 61.44%.
Yesterday, pseudonymous crypto analyst “Altcoin Sherpa” had this to say about $SOL:
“Where is the bottom at? Nobody knows. The chart itself isn’t super clear to me;I had to go all the way back to 2020 to find some support lvls. Have a few different screenshots on my levels and current outlook- I think that this current $11 area is a must hold area… If $11 falls, I don’t see any more support until $5-$3. It’s really awful to see this price action and it’s going to be very volatile in the short term. I personally would not bidding this for a while and would rather just buy higher vs. buying the dip (the dip could be v. low).
“Overall, this is nasty for SOL builders in the short term but I think that this is going to be healthy for the ecosystem longer term- not as many predatory bad tokenomics, hopefully more community projects. We will see if new builders choose SOL over Aptos/Sui… I still think that SOL is a decent non EVM chain and that they have a great community of developers and other projects, but this recent stuff is scary. Still, one blockchain shouldn’t rely on 1 person so much and that’s against the ethos of crypto in general.“
On 10 November 2022, the Solana team took to Twitter to explainn to everyone why Solana may be down but it is far from out, and that in fact it has a very sunny future:
“Solana has an active and robust ecosystem of builders. The network is strong… 2022 has been a year of unprecedented developer activity on Solana across Mobile, Games, NFTs, DAOs, Payments, and DeFi… Solana’s validator network is increasing its decentralization… Active users on Solana remains strong, even in this year’s market downturn – 11.5m active accounts and 1.7m fee payers in October…
“Network performance has improved since 1.10, with block times decreasing and throughput increasing… Open source repos and developer activity on Solana is up and to the right, thanks in part to growing developer education resources and an easier onboarding experience… DAO tooling and adoption has made it possible for nearly 1,700 Solana projects to be managed on-chain, a huge increase since this time in 2021…
“Solana DeFi remains strong, with over $150m raised by DeFi projects in 2022… One of the biggest successes of 2022 is in the Solana NFT community. NFTs are onboarding hundreds of thousands of users to the network, with over $3.6b in primary and secondary sales…“