Is Solana a Good investment in 2022? Here are two reasons why Solana is a good investment in 2022
Is Solana a Good investment in 2022? A Great Track Record
Solana was listed on FTX in April 2020. It rose from nearly a dollar to $1.5 by the end of the year. It then rose to $170 by the end of 2021. It has fallen steeply to $37 now. Let us compare Solana 2 year performance with other cryptocurrencies.
Solana has had a tremendous run outperforming leading Layer-blockchains.
Historical Data to Support Solana Investment
|$ 0.83||April 10th, 2020|
|$ 1||94 days|
|$ 10||220 days|
|$ 100||180 days|
|$ 200||11 Days|
|ATH, $ 260.06||57 days|
Is Solana a Good investment? 2022 was a terrible year but things are getting better
2022 has been tough for Solana with Solana underperforming all the leading Layer-1 Blockchains by at least 13% points. The main reason for the difference is repeated security concerns with the Solana Blockchain. Just last weekend DeFi Crema Finance based on Solana lost $8.8 million in an attack. Security issues had been quite rampant in 2021 as well but the Bull market did not penalize Solana as the current Bear market.
On NFT Sales, Solana was at its peak in October 2021 after which the gap between Solana and Ethereum increased substantially. However, with Ethereum’s struggles in June, Solana relatively had its best performance in June 2022 with NFT sales on Ethereum at 6.6 times on Solana. It was 10.4 times more in May. As a consequence, Solana was the best performing Layer-1 Blockchain amongst Solana, Ethereum, Cardano, and Polkadot.
On Defi, TVL on Solana fell from $15 B on Nov 9th, 2021 to $2.5 B on June 30th. On Ethereum, this fell from $161 B to $46 B. However, in June alone, TVL on Ethereum fell from $72 B to $46 B while it fell from $4.0 B to $2.5 B. The fall is marginally higher for Solana.
Both the metrics as well as last 1 month’s price performance suggests that Solana has probably turned the tide.
Is Solana a Good investment? Conclusions
In Sum, Solana has been a good investment since its launch. However, 2022 has been tough on account of overall market issues as well as frequent security issues with Solana.
- The crash in Solana was related to the entire crypto market trading lower due to inflation, however, it has been noticed in past SOL has quickly stabilized.
- The demand for Solana is expected to increase as the NFT and DEFI markets are expanding.
- Solana has technical superiority and efficiency
- Solana is a high-risk high-reward asset.
The last 30 days have been good for Solana and should this suggest Solana would be a good investment in 2022.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.