Solana enthusiasts should consider this before buying back at the current level
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- We will analyze the good and bad sides of the Solana network in 2022
- Why should investors consider a different strategy for SOL?
Investor interest in Solana’s original cryptocurrency SOL has slowed over the past few months. This is not only due to bearish market conditions, but also due to network degradation failures and FTX issues. Although these factors have dampened interest in cryptocurrency, its current discount is quite attractive.
Read Solana (SOL) price forecast 2023-24
Although SOL’s discounted price is attractive, there’s no getting around the diminished confidence. As a result, the cryptocurrency has barely gained enough momentum to mount a major rally since June. This highlights why SOL may not be the ideal cryptocurrency for investors looking for a big price pump during the next bullish wave.
One factor that fueled Solana’s initial hype in 2021 was the hope that it would be the “Ethereum killer.” Fast forward to the present, and the result has not lived up to expectations. However, it’s not all doom and gloom.
There is still hope for SOL
Solana certainly hasn’t fared well this year, but there are some aspects that highlight why its community remains hopeful. It has maintained healthy development activities and continues to focus on long-term development.
The development activity meter confirms that the network developers have been busy building. According to the latest updates, part of the network has grown positively since the beginning of the year. For example, the maximum number of transactions per second has increased from year to year.
Daily transaction volume is another area where Solana achieved growth this year. There was a good increase in the number of successful voice trades. This confirms that the Solana community has been more actively involved in matters related to governance.
It also maintained a significant number of voting-related transactions throughout the year, a confirmation of the network’s healthy utility.
Solana’s NFT segment took a significant hit during the year, which is reflected in the total number of NFT trades and the total number of NFT trades. Nevertheless, Solana has maintained a significant amount of NFT trading.
Change of tactics
The fact that Solana has achieved growth in some areas of its network comforts investors. However, investors still have to think about the negative aspects and what it means for the network and SOL’s price operation.
Solana’s troubles have already dampened the mood, but it is currently trading at a discount. In addition, its latest price development has confirmed the recovery of rising demand.
While rising demand is a positive sign for investors, a different strategy may be necessary. It certainly wouldn’t hurt to add it to a diversified portfolio, unlike SOL’s all entry.