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Solana has been in a market slump for a very long time now
Solana is one of the most volatile altcoins in the market and a star performing crypto of 2021. It started the year in the 120th position and ended up becoming the fifth-largest cryptocurrency by the end of 2021. Solana became a popular name in the crypto market after its wild takeover of popular cryptocurrencies like Shiba Inu, Cardano, and Polkadot, to name a few, and hitting as a popular investment choice against major cryptocurrencies like Ethereum. But, since the recent crypto market crash, few altcoins including Solana are facing the worst market slumps. A recovery is immediately needed for the SOL token before it further descents into oblivion. Estimated in January 2022, Solana has lost almost 67% from its high-time high, which is quite a lot, considering other major cryptocurrencies have already started bouncing back to regain their lost statures in the market.
According to coinmarketcap, around April 12, 2022, the crypto reached US$108 but fell as low as US$96 after a few days. Currently, at the time of writing this article, the SOL token is venturing around US$97.20, with the 7th market position.
Why is Solana Falling?
It is quite evident that the entire crypto market is crashing, hence, Solana’s market cap will also plummet. The entire cryptocurrency market has fallen by over 30% since mid-November, along with other major cryptocurrencies. Along with this, the Solana network has been facing some technical issues. Its ecosystem now holds over 1,000 projects, but it has had several outages in the past six months. In fact, last September the SOL network was down for about 17 hours. Investors were concerned that its creators had put too much effort into speed and not on security.
Besides, one of the major challenges of investing in crypto is investor speculation. Seasoned professionals are quite aware of this phenomenon, which is the primary reason for the crypto market being so volatile. It is also mainly due to investor speculation that the SOL token is still falling despite Robinhood, listing the crypto on its platform. Other cryptocurrencies like Shiba Inu and Polygon’s MATIC have soared again owing to their increased visibility after the listing. But Solana is still stuck in its slump.
Experts believe that there is still hope for the crypto to keep reigning after the US$100, and eventually reach the US$200 market. SOL token will always remain in the hype, given there is always room for improvement with this smart contract cryptocurrency, hence, they certainly would not want to miss out if Solana explodes again, later in the year.
Should you buy Solana right now?
In the current circumstances, adding the SOL token to one’s portfolio would be a sound investment strategy. The crypto industry is an unpredictable domain, hence there is no guarantee that we will not witness a crypto market crash like the one from 2021 to 2022. Regulators and policymakers are becoming even more hawkish, leading the market to suffer more. Rushing into investing in the SOL is definitely not advisable, but considering the future prospects of Solana and what it has been offering for the past couple of months, it is quite evident that Solana will rise in the future.