The price of SOL has dropped by 48% year to date, and statistics reveal that its decentralized app use is dwindling, but there are a few reasons to be optimistic.
Cryptocurrencies have not had a fantastic start in 2022. The overall market capitalization has fallen by 21% to $1.77 trillion so far. Solana’s (SOL) adjustment has been more harsh, with a year-to-date correction of 48.5 percent.
With $35 billion in value locked, Solana leads the staking charts, accounting for 74% of all SOL tokens in circulation. The underperformance can be attributed to a number of factors, including four network disruptions in late 2021 and early 2022.
The most recent occurrence, which occurred on Jan. 7, was caused by a distributed denial-of-service (DDoS) assault, which prompted Solana Lab developers to change the code and, as a result, refuse these requests.
Investors, on the other hand, are more concerned about the centralization that the expenses of being a Solana validator have generated. The suggested gear for 400 millisecond block timings is a 12 core 2.8GHz CPU, 256 GB memory, high-speed 1 TB SSD storage, and a low-latency internet connection.
After the network’s total value locked (TVL) began to loiter at $15 billion in November, Solana’s principal decentralized application (DApp) statistic began to show deterioration.
The chart above shows how Solana’s DApp deposits dropped by half in three months, reaching their lowest level since September 8. In comparison, Fantom’s TVL has doubled in three months and now stands at $9.5 billion. Terra, another DApp scaling solution competitor, saw its TVL increase by 87 percent to $23.2 billion.
While Solana has taken a hit in the market, the network remains a force to be reckoned with, and the future can only be bright given the efforts being done to enhance the blockchain and make it more effective in processing transactions.
Cointelegraph was used as a source.