Solana (SOL), a blockchain platform for hosting decentralized applications (dApps) and currently the eighth-ranked cryptocurrency in terms of market capitalization, has had a rough start to the new year.
As of March 17, Solana is currently down -66%, since reaching its all-time high on November 6, 2021, as per on-chain data provided by Santiment indicates. Nevertheless, the crypto analytics firm notes Solana continues to have an impressive rate of development from its team, showing a concerted effort to enhance the DeFi asset.
“$SOL is -66% from its #AllTimeHigh established back on November 6th. However, there has been a sharp development activity rise from the #Solana devs, indicating a push to improve. Additionally, keep an eye on volume spikes acting as price reversals.”
However, the cryptocurrency community at CoinMarketCap is showing a lot of optimism for the price of the token as it has predicted that Solana will trade at $157.46 by the end of March 2022.
The set price represents a 76% or $68 increase from its current price, which at press time amounted to $83.99. In total, the price estimate included votes from 10,692 members of the CoinMarketCap community as of March 17.
It’s also worth noting that the crypto community currently has an average estimated historical accuracy of 70.69% when it comes to Solana price projections.
Over the seven days before press time, the price of Solana had increased by 8.86%, to its current price of $89.71, according to CoinMarketCap data. Its total market capitalization at press time was $28.6 billion.
Recovery for SOL on the horizon?
Solana’s long bearish streak was due to the platform’s becoming one of the victims of the ongoing geopolitical turbulence, flattening economy, and its own circumstances.
In early February, Solana made headlines, and not for a good reason. After exploiting a Wormhole bridge vulnerability, hackers made off with around $322 million from the platform’s traders in what was one of the largest assaults in decentralized finance (DeFi) to date.
Once all the funds were restored, Solana recorded slight improvements to the price, only to consolidate below $85 in the days prior to press time.
That said, the enthusiasm of the crypto community about the token’s price can be ascribed to recent positive developments.
Examples include the launch and adoption of Solana Pay, which offers fee-free and real-time transactions with allegedly zero effect on the environment, and the growth of the platform’s NFT market, fuelled by the expansion of Magic Eden.
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