Solana is gaining massive numbers of developers, but development activity is still relatively low. SOL bears take over when the bulls run out of momentum.
Solana [SOL] gained a bad reputation in 2022 as one of the most disrupted blockchain networks. Fast-forward to the present, and the story gradually shifts in favor of the network.
Read Solana’s [SOL] Price Forecast 2023-24
Solana has entered 2022 as one of the fastest growing developer ecosystems in 2022, according to a report from Electric Capital on Jan. 17. According to the update, the number of developers working on Solana passed the 2,000 mark by 2022. In addition, between December 2021 and December 2022, the number of developers grew by 83%.
1/ A new report from @ElectricCapital shows that Solana is the fastest growing developer ecosystem, with over 2,000 developers by 2022. It is second only to Ethereum in raw numbers.
Let’s dive into the numbers.https://t.co/HQvPbQzQD2 pic.twitter.com/xV6pnoT7db
— Solana (@solana) January 17, 2023
Not quite right with Solana
However, Solana investors should not confuse this announcement with a sign that development activity has increased exponentially. On the contrary, the metric fell significantly over the past 12 months due to the impact of the bear market. The same was true for the number of contributors to the development activity.
Source: Sentiment
Aside from the number of developers, Solana has recently seen an increase in priority fee adoption and local fee markets. This was observed at the dApp and wallet level across the network.
Why is this important for SOL holders? It underscores an increase in urgency or priority for those who need such services, which means high traffic.
Priority Fees and Local Fee Markets are seeing rapid adoption across the network at the wallet and dapp level. But what are priority rates? How do local fee markets work?
read more
👇 https://t.co/fpgY1IM1Rx— Solana (@solana) January 18, 2023
In other words, Solana was growing organically at the time of writing. Perhaps last year’s challenges have shown resilience and thereby supported adoption. But how does this affect SOL’s performance?
Can SOL sustain its rally?
Looking at SOL’s measure of social dominance, it was found that the strongest four-week increase occurred in late December. There have been plenty of other spikes in social dominance that could indicate renewed interest. Unsurprisingly, SOL’s trading volume has grown over the past four weeks.
Source: Sentiment
The strong volume of SOL resulted in a significant price rally before the volume dropped significantly in recent days. As a result, the price has also experienced some slippage since mid-January. It was trading at $22.37 at the time of writing, which represented a 10.33% decline from its current monthly high.
Source: TradingView
SOL price action made a bearish retracement during press after a robust rally in the first half of January. With the next step still in the realm of uncertainty, Solana found itself in a healthier position, especially with strong support from developers.
This post Is Solana back on track after a tumultuous 2022? This report suggests…
was published first on https://ambcrypto.com/is-solana-back-on-track-after-a-tumultuous-2022-this-report-suggests/
