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- Solana is able to maintain its macro uptrend over the last few months
- The major factors that contributed to the Solana network’s growth remain to be its increasing network usage and the rising popularity of NFTs
- Observing the market and performance of SOL, analysts expect the coin’s demand will rise
- In light of the swift development pace and other behaviour with return-centric factors, SOL would end being a victim of the potential cryptocurrency winter that might unfold
Solana is one of the rapidly growing blockchain networks in the cryptosphere. Over the past few, the rally of the project has been considered beyond impressive. With some ignorable setbacks, SOL was able to keep up with its macro uptrend. Over the past month itself, the altcoin have gained more than 60%. However, the likes of other major digital assets have restricted the growth of the coin under 20% over the same time period. Following the performance and scenario of SOL many investors are concerned whether the coin will be able to inch higher or will face major plunges.
What helps Solana maintain its relevance?
There is one factor that helps Solana to maintain its incredible performance. According to the data from Salana Labs, the firm behind the project, the count of devs have seen a steep incline over the last few months. Since the end of October, the quality and pace of work of these devs has also witnessed significant improvement. Indeed, the factor helps SOL to perform better than its peers with the commitment and dedication exhibited by its devs community.
On the other hand, according to Santiment’s chart, the metric has seen revolving around its local high. Owning such activities the ecosystem has exploded across every vertical. Notably, the blockchain has been able to accommodate a host of novel projects as well.
Observing some of the major factors that contributed to the Solana network’s growth remain to be its increasing network usage and the rising popularity of NFTs. According to some data, cumulative Non-Fungible Tokens that have been minted on Solana have been increasing at a notable pace. Indeed, the factor signals that the network has been garnering mainstream attraction.
The blockchain network has glossy future
In the current scenario, the experts suggest that the long-term prospect of Solana looks fairly good. Notably, SOL has overtaken Cardano’s native token ADA on the staking front while offering highest rewards of over 6.8% to its stakers. Although the rising price is already offering an incentive for new participants, to earn a passive gain, newbies will have to step gradually.
Observing the market and performance of SOL, analysts expect the coin’s demand will rise. Moreover, the same would also rub off positively on the price of the altcoin over the longer timeframe.
SOL was able to maintain levels on Share Ratio
Besides growth and gains, it is also observed that the blockchain network was able to maintain high levels on its Sharpe Ratio. Following the activity, analysts believe that investors have been fetched with lofty returns for the risk borne by them. If Solana is able to maintain such levels while keeping ratio high, it would be able to retain high valuations even in the future.
It is also noteworthy that the coin has a truly strong community backing it. The positive momentum has been making spikes over a few months and has largely been overshadowed by the negative sentiments. Ultimately, in light of the swift development pace and other behaviour with return-centric factors, SOL would end being a victim of the potential cryptocurrency winter that might unfold.
