The Solana price is more than 60% away from its ATH and the metric signifies that its loss of profits to competing cryptocurrencies is driving the latest correction. The past couple of months has been tragic for the crypto-verse. The wider crypto market cap has lost over $600 billion in market cap.
Specifically, Solana’s drop rate was more terrible with more than 60% correction since its ATH of $260. In addition to the underperformance exclusively to the latest network congestion appears too simplistic, and it doesn’t illustrate the rising decoupling over the past seven days.
The ecosystem has undergone four consecutive situations in the span of the past few months. As per the core developers, a rapid surge in the number f computing transactions caused huge traffic over the network that crippled the protocol.
DDoS Attcks in Solana Eco-system
Meanwhile, the ecosystem fights with congestion since the core developer team advertises a 50k TPS capacity. The recent scenario on January 7th has been attributed to a DDoS attack, but metric hints to us that platform attacks are less appropriate than DApps usage.
SOL’s core decentralized application data was initiated to showcase weakness earlier in November after the platform’s TVL began to hover at $15 billion. Currently, Solana’s DApp deposits in its smart contracts saw a 44% drop in the past three months, as the metric attained its lowest level since September 8th.
In order to confirm whether DApps usage is effective, the trader needs to analyze the number of active addresses within the platform. The below metrics highlight that investors’ interest in Sol dropped 75% less than the past three months. The numbers have been really concerning because a less number of futures contracts would drop the activity of arbitrage desks and market makers.
Collectively, SOL price appears to be slowly losing all of its steam with a drop in price action, TVL, and derivatives. However, if a similar pattern continues, then the altcoin would drop below $75. Hence, it’s time for the SOL community to concentrate less on momentary outages and focus more on the platform’s usage versus competing blockchains.
Source: https://coinpedia.org/altcoin/solana-set-for-another-bearish-cycle-sol-price-to-dump-more-than-20/