It’s been a tough few weeks for the Solana [SOL] token that has faced some new crypto assets as market cap neighbors after Terra [LUNA] and TerraUSD [UST] crashed into the rankings. However, at the time of writing, the ninth largest crypto token by market cap was worth $54.50, up 3.53% on the last day, but down 23.62% in the past week.

Of the top 10 coins, only Cardano [ADA] witnessed a similar daily rally. That said, Solana slipped a long way from the rising star status it once had.

Rubbing SOL-t on wounds

At the time of going to press, Solana’s total value locked [TVL] was about $4.36 billion after a 3.76% increase in the past 24 hours. However, this doesn’t change the fact that Solana’s TVL has fallen sharply from a high of around $15 billion.

Source: DeFi Llama

If TVL losses weren’t bad enough, keep in mind that Solana’s development activity has been in a steady downward trend since mid-December 2021. This shows that community members building the project and developing features are likely to contribute less or go elsewhere. In short, it is not a sign of sustainable growth in the long term, even though the statistic is still higher than during Q1 – Q3 of 2021.

Source: Santiment

What about the price of SOL? From highs above $240, the coin was worth less than $60 at the time of printing. But are the indicators bullish or bearish right now?

The relative volatility index [RVI] showed that future volatility could drive the price of SOL both up and down. Plus, as if that wasn’t confusing enough, the Awesome Oscillator [AO] revealed a single green bar below the zero line at the time of printing. In general, an investor can rest assured that the market is still far from stable.

Source: TradingView

Solana is in a state

A report from Messari Research really took a close look at Solana as it compared how the network fared in Q1 2022 after major highs in Q1 2021.

Despite citing “deteriorated network performance” as a factor behind Solana’s revenues, the report states:

“While market cap and revenue declined by 30% and 43.5%, respectively, the network experienced continued increasing usage trends, quantified by average active unique fees (+28.4%), average transactions per second (+94.8%) and total average daily transactions (+4.2%)”

This post Solana [SOL] holds over $50 after the Terra debacle, but this could happen

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