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Solana: From network outages to bear run, why is SOL having such a bad time

Touted as an “Ethereum killer” as a result of transaction pace and the scalability it gives, the Solana Network has not lived as much as its title. The collection of outages that the blockchain has suffered in lower than a 12 months has introduced its claims of reliability below scrutiny from members of the cryptocurrency neighborhood.

In lower than six months, Solana has suffered over 5 important outages. The collection of downtimes on the Network has had a ripple impact on the worth of its native token, SOL. 

Following the outage suffered on 1 June, the worth of the SOL token nosedived from $46 to $38.5 in lower than 24 hours. The market capitalization of the token additionally suffered a drop down from $15.6 billion to $13.3 billion inside the identical window interval.

As a results of the collection of downtimes on the Solana Network and the bearish outlook of the crypto market to date this 12 months, the SOL token has declined by over 75%.

Taking on a downward development since final November, actions on value charts revealed that the SOL token at the moment trades dangerously near the extent of August final 12 months.

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Let’s check out the token’s efficiency since final November.

SOL-rowful figures 

Launched in March 2020 by the Solana Foundation, the SOL token has struggled to search out its footing in an ever aggressive cryptocurrency market. Exchanging fingers at $43.17 per SOL token at press time, the token at the moment trades on the lows it marked final July/August.

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Price chart actions revealed that the SOL token had struggled with avoiding the bears since round 16 November (yellow arrow). Attempting a bull run from 27 November until 2 December (pink arrow), the token has since suffered severely from the fingers of bears.

SOLUSDT 2022 06 06 08 31 55

Source: TradingView

From 2 December thus far, the  SOL token has posted an 81% loss in value.

SOL 1638399600 1654556399 graph coinmarketcap

Source: Coinmarketcap

In addition, inside that window, the market capitalization of the SOL token has registered a 79% decline from $70.21 billion to the $14.69 which it stood at at press time.

No Place to Run to

With the guarantees of elevated transaction pace and scalability that the Solana Network claims to supply, on-chain evaluation revealed that previously seven months, the event exercise on the community has taken a nosedive.

Development exercise is  a key metric inside the crypto ecosystem because it assures traders {that a}  venture is critical about its enterprise proposition, will possible ship new options sooner or later and is  much less possible that the venture is simply an exit rip-off.  In the final seven months, the event exercise on the Solana Network has fallen by 48%.

Solana SOL 08.48.00 06 Jun 2022

Source: Santiment

On a social entrance, a have a look at efficiency confirmed that the SOL token struggled in March. However since then, the social dominance and the social quantity for the token have since taken on an uptrend with occasional beatdowns.

With the plethora of downtimes suffered, a straightforward rationalization exists for this. At press time, the social dominance stood at 2.547% whereas the social quantity was noticed at 450.

Solana SOL 08.54.27 06 Jun 2022

Source: Santiment

Posted Some Gains within the Last 24 Hours

Although the SOL token has had a horrible 12 months, it managed to register a ten% bounce in value within the final 24 hours. According to knowledge from Coinmarketcap, it at the moment ranks quantity 9 on the record of largest cryptocurrencies by market capitalization.

Screenshot 2022 06 06 at 08.58.58

Source: Coinmarketcap

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