Solana struggled as the developers left the project to move into greener fields. The network has had a number of issues ranging from network outages and exploits to the exposure of FTX bankruptcy.
Is this the next network to collapse after Terra Luna?
Solana with many problems
Since Solana’s inception, there have been five network outages. The network co-founder notes that there were times when the network was still working but was unusable due to heavy traffic. While high traffic is good for your network, if you can’t handle it – five times as much – that’s not good news.
Solana’s longest outage lasted 17 hours in September 2021.
Even before the FTX saga, the price of SOL had fallen sharply. One of the main draws for Solana developers has been the immense support from SBF, Alameda Research, and FTX Ventures.
FTX has invested in promising Solana projects, listed them on its exchange upon launch, and raised the price of these projects through Alameda Research. An increase in the price of projects has led to an overall increase in the TVL of the Solana ecosystem and also the SOL.
Now that SBF is gone, there is no one left to pump them. Given Solana’s negative reputation, there is no good reason (incentive) to continue building this channel.
Solana remains optimistic
Well, that’s definitely not true. According to Token Terminal, daily active developers on Solana have dropped by 90% since January 2022, although Solana developers have contradicted this data.
“These numbers are absurd. Ethereum only has 250 LOL developers? Solana only has 75 LOLs? You may be confusing “active developers” with developers working on the blockchain repo.”
Despite these inconsistencies, there are more and more exploits in Solana, like the recent hit Raydium. Raydium, a Solana-based DEX, was mined for over $2 million about a week ago. Additionally, Cairo, the new Ethereum Layer 2 coding language, just overtook Solana’s Rust in terms of TVL.
To make matters worse, on December 26, 2022, Solana’s main NFT projects, DeGods and y00ts, left the network in favor of Polygon and Ethereum.
Solana is heading for an implosion. The current price of SOL today is $9.95, down 11% in the last 24 hours and down 93% from its all-time high. Additionally, Solana’s TVL is down more than 80% from $10 billion. These are tough times for the network and investors should be careful. Here is what RomeoTrades thinks of Solana investors:
Vincent Munene is a freelance writer and blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return he wants to educate people and update them on all things blockchain. He is a biochemist by profession and also enjoys playing the piano.