Solana: Amid 10% Fall, SOL Ranked Most Resilient Crypto Project

Paigambar Mohan Raj
Source: Outlook India

According to crypto analysis firm Messari, Solana (SOL) is one of the most resilient crypto projects out there. To test the resilience of various network, Messari computed the operational Nakamoto coefficients for each of them. SOL scored 1.9 in the tests, while Cardano (ADA) and Aptos Network came in at second with 1.6. Avalanche (AVAX) and Near protocol (NEAR) both scored 1.3 and came in at third.

Despite the resilience, Solana’s (SOL) price has suffered in the last few days. The token is down 6.3% in the last 24 hours and by 10.3% over the previous week.

SOL’s fall may be attributed to the U.S. SEC’s (Securities and Exchange Commission) crusade against two crypto giants, Binance and Coinbase. Moreover, the SEC named SOL as an unregistered security in its lawsuit against Coinbase. Other tokens named as securities include ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI.

Will Solana rise anytime soon?

Since Jan 1, SOL has risen by approximately 88%. SOL took a massive beating in November 2022 after the collapse of FTX. The exchange had a lot of SOL holdings and its demise led to the asset plummeting hard. Many developers and projects left the network to join others. Nonetheless, SOL has made a remarkable recovery this year.

However, given the regulatory uncertainty looming over the crypto industry, a sudden recovery seems unlikely. Although SOL has significant developments going on, the larger markets will need to cool off before it can make some serious moves. Moreover, the situation with SOL being named an unregistered security might pose a barrier to its growth, at least until it is cleared up with the authorities. The developments shed light on the need for proper regulatory clarity in the United States. With the European Union’s MiCA rules approved for implementation, many expect the U.S. to follow suit as well.

At press time, Solana (SOL) was trading at $18.73, up by 0.9% in the last hour.