The price of SOL has dropped 29% since August, and three important metrics indicate that bulls are not eager to return.
As the altcoin market capitalization decreased by 16% over the past eighty days, the cryptocurrency market has been moderately bearish.The Federal Reserve of the United States' quantitative tightening, rising interest rates, and cessation of asset purchases all contribute to the downside movement.Even though the policy aims to reduce inflationary pressure, it also raises borrowing costs for businesses and consumers.
The altcoin Solana's SOL (SOL tickers down $29 ) has suffered a 29% correction since August, making its fall even more brutal.The frequent outages point to a problem with centralization, despite the smart contract network's emphasis on speed and low fees.
The latest setback occurred on Sept. 30 after a misconfigured validator halted blockchain transactions. A duplicate node instance caused the network to fork, as the remaining nodes could not agree on the correct chain version.
Recently, Solana co-founder Anatoly Yakovenko placed his bets on Firedancer, a scaling solution developed by Jump Crypto in partnership with the Solana Foundation. Dubbed the long-term fix to the network outage problem, the mechanism should be ready for testing in the coming months.
On Oct. 11, Solana-based decentralized finance exchange Mango Markets was hit with an exploit of over $115 million. The attacker successfully manipulated the value of MNGO native token collateral, taking out “massive loans” from Mango’s treasury.
The primary decentralized application metric for Solana began to show signs of weakness earlier in November, as did the TVL and the number of active addresses.At 30.4 million SOL, the total value locked (TVL) of the network, which measures the amount deposited in its smart contracts, fell to its lowest level since September 2021.
TVL and Solana's declining value are influenced by a variety of other factors.Investors should also look at how many active addresses are in the ecosystem to see if DApp use has actually decreased.
