Solana: Are SOL’s 2022 woes behind in 2023?

Paigambar Mohan Raj
Source: The Independent

2022 was one of the worst years for the crypto industry but Solana (SOL) had a particularly bad year. The network was plagued with crashes and outages in early 2022. Later in the year, the FTX collapse added further added fuel to the fire. SOL collapsed nearly 95% from its ATH and the fall resulted in several developers jumping ship and moving to other projects.

However, Solana’s miseries might be coming to an end. The crypto market entered the new year on a positive note. Major projects witnessed significant gains after many months of stagnation. SOL has rallied by more than 44% over the previous week and over 100% in the 14-day chart. Moreover, the project has witnessed gains of almost 300% in the last three weeks.

Additionally, the FTX collapse pushed Solana off the top 10 rankings and into the bottom of the top 20. However, the project is currently ranked 11th and is $400 million shy of replacing Polygon (MATIC) as the number 10 cryptocurrency.

Will Solana regain its losses due to FTX?

The recent rally has been monumental in SOL’s efforts to gain all that was lost during the FTX collapse. The token was trading at $36.72 just before the FTX collapse and fell to around $11 in the subsequent days. At press time, SOL was trading at $23.59, showing significant growth in the past few months.

Solana also launched its new memecoin BONK, which took the market by storm. The new token rallied by nearly 4000% within its first six days.

Although the recent growth has been impressive, Solana (SOL) still has a long way to go. According to LunarCrush, SOL’s social mentions have dropped by 3.6%, and engagement by 28%.

Source: LunarCrush

The exodus of developers from the network has had a detrimental effect. The recent crypto market rally is attributed to positive CPI (Consumer Price Index) numbers for December 2022. However, inflation is still higher than the FED’s target of 2%. Therefore, the general economic outlook is still far from pleasant. The current rally might not hold up in the long run.

SOL is still a long way down from its all-time high. The token is 90.9% down from its peak of $259.96, attained in November of 2021.