Tradingplatforms.com analyzed the daily volatility of the top coins over one year to find out which ones had the highest volatility. The results were surprising! Solana (SOL) topped with an annualized volatility rate of 162% and an average daily volatility rate of 8 percent. So what could be behind these figures?
According to Edith Reads, Tradingplatforms.com’s financial analyst, “There has been constant downtime on the Solana network. In addition, the lack of new projects rolling out on the network, among other issues, have made investors lose confidence in this blockchain network, thus selling off their investments. As a result, the network’s coin has lost 70% of its value in the last 60 days of trading.”
Solana downtime series continues
There are thousands of coins out there, and they’re all trying to make their mark on the world. Unfortunately, SOL has been one of the worst-hit tokens during the recent market recession. But just how did it get there?
The answer lies in its history. SOL was touted as ‘Ethereum killer’ before it even launched. However, frequent outages and slower speeds are likely contributing to its volatility. These are eroding investor confidence in Solana as a platform for building blockchain applications.
Several outages have hit the network leading to investors dumping their coins due to constant downtime. Unfortunately, these have become too regular. Solana is also facing a clock drift issue, a delay in on-chain time caused by longer block processing.
What next for Solana
Despite Solana’s woes, the team has been working hard to improve its product. The network is using the funds from its ICO (Initial Coin Offering) to build new features that will enable them to compete with other blockchains in the space.
There are still some positives that can be taken from the Solana situation. First, is that there’s still demand for decentralized systems capable of handling high throughputs and low latency times. Second, this will give developers more time to work on their solutions and build better products before launching them.