- Solana price rose after being listed by Robinhood.
- There are concerns about Solana such as engagement and Ethereum merge.
Solana price rose on Tuesday after it became one of the few coins added in Robinhood’s ecosystem. The SOL token is trading at $103.95, which is about 6% above the lowest level this month. It remains about 27% below the highest level this month while the market value of the coin has dropped to about $33 billion.
Concerns about Solana
Solana is a well-funded blockchain project that enables creators to buy quality applications. It is seen as an Ethereum-killer that has faster throughput and lower transaction costs. In the past few months, the number of developers embracing Solana has been rising. They include apps like Marinade Finance, Solend, Raydium, and Serum among others.
Still, I have several concerns about Solana and its ecosystem. Other investors have similar concerns, which explains why the SOL price has tumbled by over 61% from its all-time high.
First, it seems like the level of engagement in Solana’s ecosystem is slowing. One way of seeing this is to look at its performance in the DeFi industry. According to DeFi Llama, Solana has a total value locked (TVL) of over $6.72 billion. This is a significant decline considering that the platform had a peak TVL of more than $14 billion.
Solana’s TVL has declined in a period when other networks have seen impressive growth. For example, the newly launched Cronos has seen its TVL rise to about $4 billion. Avalanche has moved to $10 billion while Near Protocol has soared to over $1.2 billion. Worse, a closer look at most apps built in Solana shows that activity is falling.
Second, there is a concern about the need for Ethereum-killers when Ethereum completes its transition to a proof-of-stake platform. Ethereum merge is continuing and the network will introduce sharding, which will make it faster than Solana. So, will more developers opt for Solana when Ethereum is better?
Solana price prediction
Solana price rose sharply on Tuesday after Robinhood listed it. The same situation happened with Shiba Inu and Compound. Here are other popular cryptocurrency apps.
Turning to the four-hour chart, we see that the SOL price has been in a strong bearish trend. Along the way, it has moved below the 50% Fibonacci retracement level. It has also dropped below the 25-day and 50-day moving averages.
Therefore, there is a likelihood that the Solana price will continue falling, with the next key level to watch being at $90.
