Solana Will Survive!

I recently had a few questions about the future of SOL after the FTX collapse and how it brought the price of SOL lower from its previous position @ $40.00, so I decided to write a post and find the answers. I do believe that Solana has lot of potential and will continue to bring new innovative projects and help with the development of WEB3. So here are some questions that you might be asking yourself.

Can SOL recover from its all-time low?

There is a strong possibility that the price of SOL will recover, but I am not sure if it can go back to its $300 dollar range after the FTX collapse. The relation with FTX is that Alameda Research provided a funds of $300 million dollars to the Solana. The fear that investors will not be able to recover their funds from FTX has force retail investors to withdraw their funds all at once, which push the price of SOL downward. One of the biggest issues with Solana is the ongoing outage issues of their blockchain.  

For the SOL token to be able to survive will require that Solana fix the problems with their outage and rebuild investors confident in the SOL token and Solana Blockchain. Solana have a few projects that they are working on, which I will mention later, for now let us keep in mind that we are currently in a bear market with high inflation. So, this means that it will require to be patient to see upward momentum.

Why is the price of SOL down?

The price of SOL has been going downward since November 2021 due to the economic recession and landed at the $40.00 range before sliding all the way to $13.00 after the FTX collapse. There are some analysts that are predicting the price could go down further. Solana have lost about $1 million investment assets on the FTX platform, plus 138 million of Serum and FTT tokens all together.

The price of SOL could go down to $1.83 as per some expect analysts in the field, but please keep in mind that anything could happen and change the direction of the price.

What will it take for Solana’s SOL to move back to its previous position?

The first thing that Solana should do is fix the outage issue. By having a team work around to prevent or minimize outage will help build user confidence again. It really sucks when you trying to make a transaction to purchase for an item and the network take more then 30 minutes just to have the transaction failed.

Also, Solana will need to find a way to distance themselves from Alameda Research, FTX and SBF as much as possible. Its understandable that they are just a victim of bad circumstances as they were already in a bad position, but now they need to make sure that their Solana fans, SOL users, and investor understands that Solana is focus on improving their blockchain reliability and building big and better projects.

If the Solana team can show the full potential and the remarkable thing that are soon to come from Solana it will increase the SOL sentiment and positively move its price, which I personally have strong conviction in their ability to move things back around.

What is the objective of Solana?

Solana aim to help developers build decentralized and scalable applications on their blockchain platform. The Solana blockchain operates on a Proof-Of-Skate (POS)and Proof-Of-History (POH) consensus model to verify transaction by the number of tokens they hold or by the timestamp, which verifies transaction quicker.

Why is Solana so popular?

Solana is known to have the fastest blockchain with extremely low fees for transactions. The blockchain can process 50,000 transaction per second (TPS) and the fees are $0.00025, which is closely comparable to VISA 60,000 TPS.

If you compare Solana to Ethereum they both have Smart-Contract capability for the use of different cutting-edge applications like DE-FI and NFT, although Ethereum is the largest blockchain, Solana can process more transaction for a smaller fee. It also has two different consensus model.

What is the future for Solana?

Solana Mobile team is currently working on the SAGA phone that will have WEB3 built-in applications. Users will be able to Trade Tokens, Mint NFTs, and play on-chain games, and easy access to apps on through the phone. The phone will also have fingertip seed vault to access your Solana Wallet and transact easily between dApps.  

This could be a fantastic opportunity for Solana to have a first mover advantage on the market against other blockchain developers such as Ethereum and Polygon and become a strong contender to Apple and Samsung, which dominate the mobile phone industry, if all goes well. The most important thing to keep in mind is Solana is moving in another direction to help with the growth of decentralization. This will allow Solana to get extra source of revenue and solidify their position in the crypto market.

The phone can now be pre-order on the SolanaMobile.com. The new phone is stylish with an uncomplicated design and has build in blockchain technology for the dAPPs. The phone sits at a price point of $1000, which is around the same price has the new Apple and Samsung phone. The SAGA phone has the Android 13 operation system and a 512GB storage. The chip is a snapdragon8+ Gen1 platform. The phone will be available for distribution in 2023.

The only concern is that Solana Mobile could be a head of its time due to phone users not seeing the value of having android phone with integrated Solana blockchains technology or the phone can have performance issue due to the ongoing outages from the Solana blockchain. If the project fails, this will push down the value of the SOL token and hurt their brand power.

What are the best apps on the Solana Blockchain?

Solana has several decentralize applications that are very popular like Mango, Orca, Apricot Finance, Sharky, Fantom, and Snowflake for the use of yield farm, trading with liquidity, NFT, and margin lending.

The Solana ecosystem has about 157 application projects currently running. You can learn how to build and submit a project through their ecosystem and even receive funding with a simple signup process.

Should I continue to invest in SOL?

Yes, I should and will continue to invest in SOL. I will dollar cost average since I started to invest when the price of SOL was around $40 CAD. Solana has immense potential for the upside. Solana has the fastest blockchain with the cheapest fee. It is currently entering the mobile phone business, it has some extremely popular decentralize applications, a capitalization of 4.12 billion dollars with a trading volume of 32 million dollars in 24 hours. Their brand is widely recognized in the crypto world. They have a solid community that you can participate and interact.

They still have room for improvement and have the possibility to a make major impact as long as they are continuously working on innovating their blockchain technology and investing in the future of WEB3 they will be able the survive and thrive through down time.

Closing thoughts

The world of cryptocurrency is still at its infancy and will continue to survive. As long there are people willing to invest their time and energy to help it grow and involve who known what the future will bring, but I am sure that it will be extremely positive.

If you decide to invest, please do your own research, and make an intelligent decision for yourself. If you are not sure if you should invest after doing your research, it would be wise to participate in cryptocurrency group discussions and bring up the topic of investing in Solana’s SOL. You might find people that understand Tokenomics well or have deep insight on Solana as a whole.

 Let me know your thought and thank you for reading!