Following the general drop in total market capitalization at the beginning of 2022, Solana (SOL) encountered a severe drop in value (-48.5%).
Four network outages in the last several months are listed as the most prominent reasons for Solana’s dip in value. For example, the outage on January 7 happened to be a result of a DDoS attack. It was rejected when the developers updated the code.
Still, there is another reason causing concern among investors. In order to be a Solana validator, one needs to have extremely powerful hardware: at least 256 GB memory, 12 core 2.8GHz CPU, and high-speed 1 TB SSD drives. Since such equipment isn’t easily available or cheap, investors began giving up on this crypto.
DApp deposits decreased by 50% in September, as Solana’s total value locked (TVL) started lingering at $15 billion. As a comparison, in the same period, Solana’s competitor Terra increased its TVL to $15 billion (87%).
However, Solana seems to have its second chance. FTX.US stated that it plans to launch a new blockchain gaming unit. As a reminder, in November, Solana Ventures partnered with FTX and founded a $100 million fund dedicated to blockchain gaming development.
Users expect to see how the network will respond to the new gaming projects.
Despite poor results at the moment, most Solana owners aren’t concerned because three-quarters of coins are still locked in staking, so the network still has the potential to yield better results in the future.