It’s been a rough couple of weeks for the Solana [SOL] token that has been dealing with some new crypto assets as market cap neighbors after Terra [LUNA] and TerraUSD [UST] crashed down the rankings. However, at press time, the eighth biggest crypto token by market cap was worth $54.50, after rallying by 3.53% in the last day but dropping by 23.62% in the past week.
Amongst the top 10 coins, only Cardano [ADA] witnessed a similar daily rally. That being said, Solana slid down a long way from the rising star status it once held.
Rubbing SOL-t on wounds
At press time, Solana’s total-value-locked [TVL] was around $4.36 billion after rising by 3.76% in the last 24 hours. However, this doesn’t change the fact that Solana’s TVL has fallen hard from highs of around $15 billion.
If TVL losses weren’t bad enough, also keep in mind that Solana’s development activity has been on a steady downtrend since mid-December 2021. This shows that community members building the project and developing features are probably contributing less, or moving elsewhere. In short, it is not a sign of sustainable long term growth, even if the metric is still higher than what it was during Q1 – Q3 of 2021.
What about SOL’s price? From highs of above $240, the coin was worth below $60 at press time. But are the indicators bullish or bearish at the moment?
The Relative Volatility Index [RVI] showed that future volatility could take SOL’s price either up or down. Furthermore, if that wasn’t confusing enough, the Awesome Oscillator [AO] revealed a single green bar below the zero line at press time. Overall, an investor can be sure that the market is still far from stable.
Solana is in a state
A report by Messari Research really put Solana under the microscope as it compared how the network has fared in the first quarter of 2022 after hitting major highs in the final quarter of 2021.
“While market cap and revenue declined by 30% and 43.5%, respectively, the network experienced continued uptrends in usage, quantified by average active unique fee payers (+28.4%), average transactions per second (+94.8%), and total average daily transactions (+4.2%).”