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Solana Keeps Struggling at $39 as Network Usage Drops to Lowest Level

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VOC, Voice of Crypto, Solana, SOL

Solana’s native Token (SOL) has experienced a tough year in the crypto markets, but it is far from over. It’s no surprise that Solana’s network has been suffering from the ongoing economic downturn. Recent data revealed its financial performance is at an all-time low, with usage plummeting to levels not seen in 2 years.

In addition, the total value locked (TVL) on the Solana network has also declined by 32.4% in the last 24 hours following the news of the FTX collapse.  DefiLlama says Solana’s TVL has tumbled to $423.68 million, down 32.4% in the last 24 hours.

 Solana Network Usage Decreases by 17.6%

The data from Messari indicates that the number of daily transactions on Solana has decreased by 17%. This is likely due to many people moving away from using it.

Solana’s network performance has been declining, and in the second quarter of 2022, it experienced a 44% decrease in revenue compared to last year. The average transaction fees also decreased by a massive 40.6%.

However, the number of minted NFTs on the Solana network has increased, which is great news. The number of new NFTs issued monthly is rising, with over 7 million NFTs minted in the second quarter, indicating a monthly rise of 46.6%.

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While the Q2 report was not flattering, Solana’s network has improved, thanks to an update that went live in May. The first stages of this new Mainnet beta started with v1.10, and there are reports from users who say they’ve seen improvements on their end.

Solana Price Analysis

SOL price performance is showing price gains daily. The bulls are attempting to turn support into resistance, pushing the SOL price above the $43 level. Currently, this cryptocurrency is trading around $42-$43 in the context that analysts are expecting this cryptocurrency to break through the resistance level and continue to rise.

Solana Price

Solana Price Action | Source: Tradingview

The price is trading in a bullish channel on the daily chart, but there is a change. Price is making higher lows along with lower highs, indicating that accumulation is forming inside a trading range.

The price is trading within a tight range of a symmetrical triangle pattern. There is a higher probability of issuing a breakout on the higher side, with the first upside target expected at $48.

The RSI (14) is trading above 50, showing that the average gain is larger than the average loss. That is a bullish sign. Conversely, a break at $40.8 could invalidate the bullish outlook. And the price can re-test the $38 zone.

 

Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)

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Jim Haastrup is a freelance blockchain and metaverse writer. He helps founders, investors, startups, crypto, and blockchain enthusiasts connect with their audience and win investment through the written word.

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