Analysts divided on Solana (SOL) despite its success

Sun 07 Nov 2021 ▪ 21h26 ▪ 3 min read - by Katie Donaldson

The Solana network offers support to virtually anything from startups to major companies. It’s no surprise that the platform attracts investors from all over the world, as well as the fact that its native token has just reached an all-time-high (ATH) again, entering the top four cryptocurrencies by market cap for the first time.

Solana continues to prosper

On 7th November, the SOL price crossed above $262. The net worth of total SOL tokens in circulation is more than $76 billion (~£56 billion) now; the cryptocurrency is right behind Binance Coin’s (BNB) $109 billion (~£80 billion), Ethereum’s (ETH) $540 billion (~£400 billion), and Bitcoin’s (BTC) $1.17 trillion (~£870 billion). Solana’s decentralised finance (DeFi) projects crossed the $4 billion (~£2.97 billion) mark in September. 

These events have attracted the attention of many crypto analysts worldwide. For example, the CEO of DigiWhales publicly criticised SOL. “After an audit, it was discovered that Solana lied about their supply. Instead of being 8 million, it’s 20 million. They lied and had 12 million coins hidden in a “market maker” wallet. They’re also partnered with Tether, which is why I stay very far away,” he said. 

Lark Davis, a crypto analyst, decided to promote the token by creating a Solana poll on Twitter.

Hundreds of people showed their support as a response.

Mayson Nystrom, a researcher at Messari, said that Solana’s ATH is a result of the growing number of non-fungible tokens (NFTs) in the Solana ecosystem. The blockchain has processed $500 million (~£370 million) worth of total NFT secondary sales volumes since April 2021. 

“Whether or not Solana can manifest this initial energy into long-term NFT growth is yet to be determined, but current signs present valid reasons to be optimistic about Solana’s burgeoning NFT ecosystem,” he added.

However, some analysts state that now is not the best time to hop on the Solana bandwagon. The cryptocurrency has just formed a Rising Wedge, a technical indicator which suggests a reversal pattern frequently seen in bear markets. We can also see a clear bearish divergence between its rising price and declining momentum (as confirmed by lower highs on its daily relative strength index).


Solana’s autumn rally continued on 7th November, with SOL’s price reaching another record high. SOL has recently overtaken Cardano and Tether in the crypto charts.

Katie Donaldson

I went full time crypto back in June 2018, and have never looked back. I want to help persuade as many people as possible to come and build the decentralised future! Let’s go!

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.