Solana price is hovering near its lowest level in August last year as investors and developers worry about the persistent outages. The SOL token is trading at $40, which is significantly lower than its all-time high of $240. Its market cap has crashed to $13 billion.
Solana is a blockchain project that has become a favorite among web 3.0 builders. It has been embraced by some of the leading developers around. For example, Solana was used to build Stepn, the popular web 3.0 move-to-earn project.
Solana was also used by Brave Browser, which is one of the fastest-growing platforms in the industry with over 60 million users per month. Other popular platforms built using Solana are Hoglympics, Chainers, Naga Kingdom, Solend, and Audius.
Solana has also been used widely in the decentralized finance industry, where it has been used by 67 builders. Its total value locked is $3.86 billion, making it the fifth-biggest platform in the industry after Ethereum, BNB, Tron, and Avalanche. Developers love its blazingly fast speeds in the network.
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The biggest challenge for Solana is that its platform is rife with outages that are not common among other blockchains like Ethereum and Avalanche. Last year, it experienced a three-day outage that made it impossible for users of its ecosystem to transact.
The outage is continuing at the time of this writing. A look at its explorer shows that the last transactions were confirmed 6 hours ago. This is the second major outage to happen in Solana’s ecosystem in the past 30 days. And in 2021, the network went offline for more than three days.
Therefore, there are concerns that developers will opt for other reliably stable blockchains like Avalanche and Ethereum.
Solana price prediction
The daily chart shows that the SOL price has been in a strong bearish trend in the past few months. The coin managed to cross the important support level at $76 in May as the Terra ecosystem crashed. It is now staring at the crucial support at $35, which was the lowest level this year.
Solana remains below the 25-day and 50-day moving averages while the MACD has moved below the neutral level. Therefore, there are no bullish signs, meaning that the coin will likely have a bearish breakout to $25.