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Should you buy Solana (SOL) after the recent crypto market slump and network issues?

By:
on Jan 24, 2022
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  • Solana’s trading volume increased throughout the last 24 hours.
  • The token is at one of its lowest value points, which makes it a solid buy for future growth.
  • SOL has the potential to reach $100 by the end of February 2022.

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Solana SOL/USD is a blockchain network that has seen a high level of growth throughout 2021.

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Solana is a high-performance blockchain that supports builders on a global scale who want to develop a blockchain-based application that can scale and has an ecosystem of hundreds of decentralized applications (dApps).

SOL is the native cryptocurrency token used to power the network.

The network instability issues as a reason for the decrease

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On January 22, based on a report by Solana Status on Twitter, Solana suffered network instability during a brutal week for crypto.

The problem faced by validators using their computing power to verify the network was caused by excessive duplicate transactions, according to a notice on Solana’s website on January 22.

Version 1.8.14 was released as a means of attempting to mitigate the worst effects of this issue, and further developments are expected in the next eight to twelve weeks.

These troubles that Solana is facing are occurring amid a significant decline in tokens throughout the previous week, from Bitcoin to Ethereum and even other altcoins. 

On January 24, Solana also slipped 15% on congestion news and lost a total of 40% within the span of a week.

However, Solana (SOL) has genuine potential to recover from this and can grow in value once these issues are resolved.

Should you buy Solana (SOL)?

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On January 24, 2022, Solana (SOL) had a value of $83.81.

To get a better perspective as to exactly what this value point means for the SOL token, we will be going over it’s all-time high value alongside the performance the SOL token showcased throughout the previous month.

In terms of the all-time high value of Solana (SOL), it was on November 6, 2021, with a value of $259.96.

This gives us an indication that the token is currently $108.34 lower in value than it was at its ATH point.

When we go over the performance of the token in December, we can see that on December 2, 2021, the token had its highest point of value at $242.28. 

Its lowest point of value, however, was on December 14, when the token decreased to a value of $151.62. This indicates that the token decreased in value by $90.66 or by 37%. 

However, from December 14 to January 24, we can also see an additional decrease of $67.81 or by 44%.

With that in mind, Solana (SOL) has genuine potential to increase to $100 by the end of February 2022, assuming all of the issues get resolved, and the token breaks the $85 price barrier. If the token decreases under $80, then it might be worth reconsidering.

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