The Crypto markets in general have taken a hit in the last couple of weeks, with many assets zeroing out their yearly gains, atmospheres like this brings out the weakness in major sectors and it's doing just that.
Blockchain In Review
Solana is one of the major Ethereum revivals, often referred to as the ethereum killer, but many key takedowns do not support this notion. With several crypto project on the edge of a collapse, Solana is flirting with a time bomb if it continues to embrace network outages.
Judging from the bearish nature of cryptocurrency markets lately, Solana is falling face down with over 19% decrease in the last 7 days. Its recent price bearishness has been as a result of its network downtimes, investors are losing faith on this one and making major exits.
Market Share
Over $17 billion has exited the projects market capitalisation in the space of one month. It could also be a simple market reaction, but what matters at some point is how much more can it fall? And when it does, what are the chances of recovery?
VCs will be VCs
When you're invested in a project with big players, you have to be wary of major hits, the trends on Solana aren't looking healthy, we've seen many levels of resistance amongst crypto projects over this period, Solana is clearly losing it. With the increase in transactions on the chain, the network is unable to maintain performance, this is bearish considering Solana has less than 200 protocols operating on the chain, while Ethereum has over 400 protocols, how's that for a killer?
You can't buy value
Market pumps, manipulations and NFT market in flow are easy game plays, but keeping hold of retail value? It takes a snap of a finger to have them exiting. Now this isn't to give investment advice, but many crypto projects will join Luna at the bottom, either on a steady downtrend or a flash crash.