Is Solana worth repurchasing?🐹

Today let's break down the once top 6 cryptocurrencies and one of the growth leaders of 2021 - the SOL token. What are the plans, does it make sense to buy and where to fix 👇

Prestory. Solana is a fast and very cheap blockchain where Alameda, FTX and other funds are invested. The funds didn't sell the token after the unlocks, but raised the rate from $2 to $260. Then the bear came and the rate plummeted to $30.

And in November the FTX exchange and the Alameda fund, the main manipulators of SOL, busted. As a result, the largest holders and backers of the project went bankrupt, pushing SOL down to $10.

Signals that the project is dead:

🚩 TVL (money in the ecosystem) dropped from $10 billion to $225 million, its lowest level since April 2021. 10%-40% of liquidity is being withdrawn from the major protocols each week. On top of that, the Top 3 protocol on Raydium solan recently got hacked.

🚩 Top-1 wallet on Solana added support for Ethereum and Polygon blockchain. Apparently to diversify the risks of working only on solana.

🚩 Top NFT collections DeGods and Y00ts will move to Ethereum and Polygon respectively in January. Apparently the NFT sphere on solana is coming to a sunset, too.

🚩 The number of developers on Solana has dropped from 2,453 to 75 in a year. Overall, there is a negative backdrop around Solana because of the tight ties to FTX and Alameda, who have used customer funds for their own purposes.

On the plus side:

✅ Solana has clear plans for 2023. Alex Yakovenko, CEO of Solana, explained what the team will be doing: developing Solana Stack software for mobile devices, creating a seamless network, simplifying programming...

✅ The network is still fast and cheap. NFT on solana is more user-friendly than on air + low commissions and there is a strong community. Cheap and fast on solana, it's an unploughed field for innovation and experimentation.

🤔 Conclusion.

Solana is very similar to EOS this cycle. It also gathered investments from powerful funds, also made 100+ X's and also collapsed 96%+. Solana still has a community, developers and even some liquidity. The network is not going to finally die.

I believe in a scenario where SOL, like EOS once did, will make 5-10 X's from the bottom during a bull market. The question is, how much of a collapse will the rate make before a bounce goes in? The rate could drop to $2 and make 5 X's back to the current price.

You can try to guess the bottom and catch 5-10 X's on a local bull. But also consider the risks and the manipulative nature of the asset. And if you are not ready to take risks - forget about the asset, the market is full of more interesting projects 🫡