The ongoing winter marks as the worst winter for the whole cryptocurrency market and crypto tokens.
November 2022 marks the worst year for many cryptocurrencies as their prices started to fall apart. This situation was worsened by the collapse of FTX, a centralized crypto exchange.
On 5th November 2022, the price of Solana (SOL) diminished by 68.91% and left many investors in complete turmoil. This situation became further intense on 9th November 2022, when Solana’s price further slipped to $12.3.
Since then till now cryptocurrency market has shown no sign of stability and recovery, the rampant changes have been the consistent trait of cryptocurrency markets for over one month.
Given the current circumstances, investors are unsure about what will be the future of Solana (SOL).
Despite the current uncertainty a look at Solana’s past performance indicates a sustained performance in the market.
Solana Price Analysis Down The Line
For the past many years, Solana (SOL) has performed exceptionally well. Starting from the price at $0.23 in April 2020, Solana consistently raised its value.
After a sustainable performance for almost a year, Solana reached the $258 mark, the highest price ever on November 2021.
The interesting fact about Solana is that in a similar time frame when all other altcoins’ prices were declining, Solana’s price was on the rise.
Even though two of the most expensive cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) both touched the new highest in terms of market value, the overall rise was not that huge for Bitcoin and Ethereum.
However, November 2022 has been the worst year for Solana (SOL) in terms of its market price.
Amid the news that FTX (FTT) exchange is up for sale and Binance (BNB) is going to take over FTX has created market panic, following that panic Solana (SOL) lost almost lost 50% of its price.
Just a few days after, Binance announced that they have called off the deal. This news damaged the market stability as the result the price of Solana (SOL) further diminished, and cryptocurrency crashed by 70% in total.
Since then the market has not recovered and all the cryptocurrencies are struggling to bounce back including Solana (SOL).
Solana’s Financial Woes
On November 17th the situation further became troublesome for Solana (SOL), as the transactions of USDC and (USDT) stablecoins were restricted on the Solana Blockchain from Binance.
This Means Binance users were restrained from directly transferring the crypto assets to Solana Blockchain.
Moreover, Solana’s assets worth $1 million were also stuck on the FTX at the time of the exchange’s collapse.
Moreover, at the time when FTX filed for bankruptcy, Solana had SRM tokens worth 134.54 million and 3.44 million FTT tokens on FTX, at the time when FTX froze all the withdrawals from its blockchain. As of Dec 2, 2022, Solana’s assets worth $299m are frozen.
The Future Price Indicator of Solana
Before commenting about future price predictions, it is important to consider that following the current market volatility the price indicators can be proven wrong easily.
The analysis conducted by CoinCodex argued that Solana can reach the $13.76 mark on 7th December 2022. After December 7, 2022, till Jan 2023 Solana will remain stable.
However, with the start of the New Year, Solana’s price is expected to drop to $7.03. Moreover, a strong bearish run has been associated with the Solana prices.
DigitalCoinPrice indicated a strong bullish run in its price prediction of Solana (SOL). Following the currency’s history and its blockchain performance, analysts have said that by the mid of the year 2023 will be at $33.41.
It is important that investors should keep in mind that cryptocurrency markets as of now are extremely unpredictable, making it difficult to anticipate what a coin’s price will be in the future.
So precautions are important before investing in Solana (SOL) or any other crypto coin.
