THERE'S ALMOST NO FUNDING FOR SOLANA
One of the biggest investors in the project developing on Solana was Alameda. While some Solana projects have made the commitment to remain, others have relocated. Given that the financing for the Solana ecosystem is largely gone, two projects that were created on Solana are considering to switch to Polygon because it offers the opportunity to build on Ethereum layer two. A few days later, Solana SOL dropped to its lowest price in almost two years and dropped out of the top 20 cryptocurrencies by market valuation. The fact that SOL has declined by the biggest proportion of any other large-cap cryptocurrency besides Terra Luna has been noted in numerous headlines didn't help.
Vitalik Butteren started a SOL rally with a Tweet just when Solana FUD had reached a critical mass. Although Vitamin received recognition for its optimism, it's crucial to note that any cryptocurrency initiative may benefit from the same kind of support. Almost all cryptocurrency projects have shady investors, and the majority of the participants have lost their money. Solana differs from other faltering initiatives in that it has built up a sizeable amount of ICO investment and the term has a two-year runway.
Solana will probably recover as long as it can withstand the weak market. Its ability to compete once more is a quite different matter. The so-called Ethereum killers will need to carve out their own market if they wish to compete since it appears that Ethereum will retain its position as the leading smart-contract cryptocurrency. I have no doubt that I can accomplish this. The only thing that Solana's tight ties to FTX, Alameda, and SBF imply is that it will probably come under regulatory scrutiny for addiction.
It all relies on how the rest of the cryptocurrency market performs if you're wondering how much lower SOL Coin could go. In my opinion, the market could experience another 40% to 50% meltdown in the near future, necessitating a further 40% to 50% decline for SOL currency. This implies that other comparable large-cap companies would also see a similar decline, and some of them are already displaying more signs of weakness than Solana. Meme coins may fit into this category because their value is largely based on speculative activity, which has virtually vanished. As seen by the recent decline in Dogecoin, this made their price movement extremely susceptible to even minor bad news.