A rise in staking on the Solana network has reduced the circulating supply of SOL. Historically, a shortage of the asset’s tokens fuels a bullish narrative for price. Analysts expect the SOL price to recover from a drop below $200 and make a comeback within a week.
The Solana network suffered network congestion on Thursday, and the crypto community criticized the Ethereum-killer for lack of centralization and transparency. After an 18-hour downtime, the Solana network is yet to state the cause of the congestion. Solana’s on-chain activity has increased as developers and users from the Ethereum network rotate capital into SOL for cheaper transaction fees. Solana has emerged as the top choice in the DeFi ecosystem. The altcoin, popular as an Ethereum-killer, is currently downtrend, trading at $178.78. @Crypto_Ed_NL, a cryptocurrency analyst, is not convinced that the correction is complete.
Tyler Hill, a cryptocurrency analyst and YouTuber, expects Solana price to explode. Hill says,
“December 15 is the last day that we have to push back above 200 in order for us to see this key level of support hold again, as it has multiple times last year. If we see a break to the downside within a week, we could see this level push us back in an uptrend.”
Please note that Solana prices have climbed more than 15,000%, from 1,21 to 259 dollars this year and it have big potencial to reach $1000.
You can buy Solana from here.