$SOL: Coin Bureau Explains Why Solana Price Could Go As Low as $8
In an update released two days ago, Coin Bureau looked at how the collapse of SBF’s FTX empire could impact the price of $SOL, the native token of the Solana blockchain.
Here is how Coinbase described Solana in a blog post published on 29 June 2022:
“Solana is a decentralized computing platform that uses SOL to pay for transactions. Solana aims to improve blockchain scalability by using a combination of proof of stake consensus and so-called proof of history. As a result, Solana claims to be able to support 50,000 transactions per second without sacrificing decentralization, and is one of the largest proof of stake blockchains by market cap.
“Solana aims to enable smart contracts to allow developers to build a wide range of decentralized finance (DeFi) apps, new crypto tokens, games, and more. When users stake their crypto, they make the underlying blockchain of that asset more secure and more efficient. And in exchange, they are rewarded with additional assets from the network, which are paid out as rewards.“
According to a report by The Daily Hodl, on Thursday (18 November 2022), the pseudonymous host of the popular crypto market commentary show, had this to say about Solana:
“… it’s clear that the demand for SOL is down, and it’s easy to understand why... Some have begun to question Solana’s future. And this is in large part due to the massive amount of SOL that FTX and Alameda will be forced to sell when the time comes to compensate their creditors...
“To make matters worse, the bottom of the crypto bear market probably isn’t in yet. This means that SOL will go lower even without all the sell pressure from these entities... Its long-term price chart suggests SOL could fall to $8. This would be consistent with the estimated percentage loss in other large altcoins.“
Recently, former Goldman Sachs executive Raoul Pal explained why this could be a great time to buy $SOL, the native token of the Solana blockchain, despite all the doom and gloom surrounding the Solana ecosystem in the wake of the collapse of FTX.
Prior to founding macro economic and investment strategy research service Global Macro Investor (GMI) in 2005, Pal co-managed the GLG Global Macro Fund in London for global asset management firm GLG Partners (which is now called “Man GLG”). Before that, Pal worked at Goldman Sachs, where he co-managed the European hedge fund sales business in Equities and Equity Derivatives. Currently, he is the CEO of finance and business video channel Real Vision, which he co-founded in 2014.
According to a report by The Daily Hodl, earlier this week, during an “Ask Me Anything” session streamed on YouTube channel “Real Vision Crypto”, Pal had this to say about Solana:
“I really like Solana and I understand that the chain breaks. I also understand that they are fixing it. I also understand that’s a no-no. And one of the elements was, it was concentrated in its ownership because of FTX. They are now able to liquidate it and so you’re getting rid of one of the issues.
“Solana itself, I think it’s doing something very clever. In cryptocurrencies, what matters is narrative. Bitcoin narrative, digital gold for example. Ethereum, the distributed Internet for Web3. So where do these other chains fit in? Well, Solana has and is building a narrative, which is the consumer chain…
“But the consumer Internet, these are the people who’ve done the deal with META, doing deals with Google. They’ve got stores. They’ve got clothing lines. They have a consumer feel to them. And I believe consumer adoption, not at owning cryptocurrencies, but the use of NFTs [non-fungible tokens] and other digital assets is only going to explode over the next few years…
“Solana reminds me of Ethereum back in 2018 when it was down 97% and nobody cared. And that was a great bloody opportunity.“
Currently (i.e. as of 9:50 a.m. UTC on 20 November 2022), according to data by CryptoCompare, $SOL is trading around $12.78, down 0.93% in the past 24-hour period, and down over 95% since it hit $259.96, which was its all-time high, on 6 November 2021.
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