Solana has outperformed all other blue chips this week, rising 27 percent. However, the altcoin has fallen by over 9 percent in the last 24 hours. Solana is giving back its gains as analysts say the multi-week rally is a price correction.
Was the rally just a price correction?
cryptokoin.comAs you follow from , Solana made a 50% gain in October. Moreover, it has become the favorite of the market with a spectacular increase of over 250% since the beginning of the year. It has outperformed all other blue chip cryptocurrencies during this period. However, Solana is down over 9% in the last 24 hours, according to CoinGecko Some analysts suggest that the altcoin price rally is a price correction resulting from a long period of undervaluation.
CoinShares Research Analyst Max Shannon says Solana is hitchhiking on Bitcoin’s rise. He also notes that “the rally is primarily driven by hype.” Ruslan Lienkha, Head of Markets at YouHodler, says that “the recent increase looks more like a price recovery as the token has been undervalued for a long time.” In this context, Lienkha draws attention to the following points for the altcoin:
Solana suffered a dramatic drop in value after the FTX implosion. Additionally, the token missed the uptrend in the crypto market from the beginning of this year.
Solana has strong developer foundations!
Ryze Labs Founder and Managing Partner Matthew Graham points to the strong developer foundation behind Solana. Based on this, Graham shares the following assessment:
From day one, Solana set out on a mission to gain mindshare among developers who would launch unique platforms and products. The price movement reflects the work from engineering to community development that has made Solana a vibrant ecosystem full of useful products. I don’t see Solana’s momentum slowing down.
Altcoin project is still quiet, according to Max Shannon
CoinShares’ Max Shannon, on the other hand, sees altcoin Solana’s metrics as still muted, “with flat growth from transactions, TVL, fees, revenues and developer counts.” Shannon expresses these views as follows:
Savvy investors can count on the quiet developments and implementation of isolated fee markets, the introduction of Jito-Solana to combat spam transactions, and the development of Firedancer as an independent validator client that improves its stability, performance, and scalability as a network. Otherwise, we suspect the 94% peak-to-trough decline makes it an attractive proposition regardless.
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