Despite the impressive price rally, many analysts think that the fundamentals remain weak and this could be a short-term bubble. The main issue is that Solana’s network is still in its early stages and there’s a lack of real-world usage. With the infrastructure yet to be fully established, it’s hard to believe that SOL will maintain its current price level.
Moreover, SOL faces competition from Ethereum, Cardano, Polkadot, and other second-generation blockchains. This could act as a drag on its price in the long run. In addition, there are also some concerns regarding the scalability of SOL’s network. Transactions often suffer from high latency and this could limit their usage in the future.
Overall, the recent rally in SOL price has been impressive, but it could be short-lived due to the underlying weak fundamentals. Therefore, investors should proceed with caution before investing in the Solana network. Solana could benefit from an increase in institutional investors
Solana can still thrive back
However, not all is lost for Solana. If the blockchain project can attract more institutional investors and develop its infrastructure further. However, it could see a sustainable price rally in the long term.
The recent listing of SOL on Coinbase Pro is a step in the right direction and could help boost its adoption among investors.
Additionally, since Polygon has inked crucial accords with prominent firms like Reddit, Starbucks, and Meta, they have been rapidly receiving attention.
Moreover, opting for Polygon rather than Solana was DeGods’ course of action. This was after being awarded a $3 million grant from Polygon Labs.
The enterprise development staff of Polygon possess accolades as the standout performers in the business realm. In light of these facts, it appears that Solana could be facing stiff competition in the long haul.
Overall, while the recent price rally has been impressive, investors should be aware of the underlying fundamentals. Additionally, they should also take note of their implications in the long term.
