On January 7, 2021, Solana (SOLUSDT) traded at $2.3 after the daily close. SOL never came to this level and went towards the upside only. In just 11 months, SOL made an all-time high of $259, more than a 10 thousand percent profit.
This is an insane profit, and everybody is buying on top, and every influencer is talking about just Solana Web3, fast blockchain, and blah blah blah.
This Solana is currently down more than 93%, and SOLUSDT trades around $11, but every crypto person is very bearish on Solana…Why is everyone concerned about any fundamental change? Is there any Web 3 project that is better than Solana? So, why are people so pessimistic right now?
The answer is the market cycle. When the price rises, there is greed, and when the price falls, there is fear.
WHY DOES EVERYONE FEAR OF SOLANA (SOL)
2022 is the worst year for the crypto market, but it is also a very interesting year for learning about the crypto space. There are two major events that affect the $1 trillion market: the Luna UST event and Sam Bank-Fried (SBF), which we will not discuss in this article; you can read my previous article about SBF here.
Solana is inextricably linked with SBF’s major investment, which is why my crypto flok is worried. However, the fundamentals haven’t changed: we know that Alameda creates a lot of meme coins on the Solana Chain, which is why the SOL DEFI project is having trouble with liquidity.
According to Defillama, Solana’s total valued locked (TVL) is currently at a massive low; SOL had 10 billion TVL in November 2021, but now it’s only 218 million; this is fucking shocking for Defi projects in Solana’s ecosystem.
Solana Decentralized Exchanges DEXs volumes are insane down and serum is totally dead as compared to the volume, Serum is the top Defi project of Solana SRM Dex volume crossed billion in January 2022 but at a time almost zero.
Raydium is an automated market maker (AMM) and liquidity provider built on the Solana blockchain for the Serum decentralized exchange (DEX) and the liquidity provider project needs cash to run DEXs
But there is nothing sound to the Solana project collapse it’s just a market uncertainty that’s why the people so bearish on this web3 can’t go anywhere.
Wrapping UP
If you are trading in any cryptocurrency, please always book profits and don’t be a fool to the market. When the price is up, the market is working its way up, just as every uptrend has a downtrend.
