Solana is losing ground under its feet as developers are leaving network
Solana earned itself the title of punching bag of the year as it has been gradually losing its value throughout the year and faced an accelerated sell-off after the FTX implosion. However, the new stage in Solana’s development hints at the upcoming aggravation of the current state of the project and the network as a whole.
According to Santiment’s data, Solana’s development activity is plunging massively as developers are no longer seeing any advantages to using the network that used to be called an “Ethereum killer.” The current state of the network and its underlying coin suggest that its complete death is closer than a potential recovery.
📉 #Solana is now down 73% in the past 8 weeks. The #FUD is strong toward the once thriving asset, but there appears to be some pretty good justification with development activity coming to a halt. Read our take on what metrics are pointing to for $SOL. 👀 https://t.co/P7AnKYfKYN
— Santiment (@santimentfeed) December 28, 2022
In the last eight weeks, the price of SOL decreased by almost 80% following the sell-off initiated by Alameda, enormous selling pressure from retail holders and yet unrealized unstacked SOL that will most likely become a fatal blow for the asset.
Recently, SOL lost a few NFT collections that should have become a source of revamped network activity. Unfortunately, developers chose alternative networks like Ethereum and Polygon.
The outlook for Solana does not look good, without any fundamental shift in the project’s roadmap, it is not clear how the asset will act in 2023. Numerous large projects are choosing alternative blockchains, existing projects are halting some of their operation and the biggest marketplaces like MagicEden are not seeing any new inflows.
From a technical perspective, Solana also does not show us any positivity: all major support levels have been broken, and the trading volume is at extremely low levels, most likely consisting of marketmaking operations. At press time, Solana is trading at $10.