Consulting giant Fool analysts analyzed altcoin projects that could quickly rebound in the new year after a devastating 2022. Experts evaluate the prominent names from the Layer-1 Blockchain category.
Fool analysts expect recovery in this altcoin project in 2023
The abrupt recovery of the crypto market this year has helped some previously underperforming cryptos to trend quickly. Solana (SOL), for example, posted a massive 125% increase this year.
The market meltdown last year shows Solana has a huge first mover advantage. Launched in March 2020, the altcoin still has a vibrant crypto ecosystem despite the FTX crash in November. Over the past three years, Solana has grown into a leading network for NFTs, dApps and Blockchain games. What’s more, it’s now also getting into areas like DeFi. A look at the weekly chart confirms that Solana is starting to recoup her recent losses with these developments.
Solana’s roadmap
Fool analysts are pretty optimistic about Solana’s roadmap. In January, Solana’s co-founders outlined all the ways blockchain will create value across a wide range of industries and sectors. Various strategic initiatives over the past 12 months, including the launch of Solana Pay and Solana Mobile, were all part of a broader, broader strategy based on Web3 and decentralization.
Network performance
If there’s any category where Solana can fall behind its competitors, it’s network performance. One of Solana’s biggest issues in 2022 was network instability. A series of high-profile outages took place throughout the year, causing great concern among investors.
At the end of 2022, Solana made a number of moves to address the gaps in network performance and things were looking good. However, as Cryptokoin.com reported, there was another network outage at the end of February. The Solana network was suddenly in the dark once again. This leads to pollution on both Blockchain technology and cryptocurrency regulations.
Solana Mainnet is experiencing a large forking event right now, validators are investigating to determine the network health, root cause and next steps. Transactions may fail right now
— Laine ❤️ stakewiz.com (@laine_sa_) February 25, 2023
Solana hit hardest as altcoin market tumbles in FTX crash
It’s impossible not to mention FTX when talking about Solana. Solana burst onto the scene with extensive venture capital financing led by former FTX CEO Sam Bankman-Fried and FTX Ventures. Affiliates of FTX, such as hedge fund Alameda Research, were known to hold large sums of Solana.
As a result, the SOL price crashed by over 80% in about 3 days with the collapse of FTX in November. There were concerns that FTX (or its affiliates) would immediately sell all of its Solanas. The big rally in Solana with the start of 2023 was as much a “rally of relief” as an indication of confidence in long-term prospects.
Fool analysts, in final words, consider Solana to be more promising as a long-term investment than other Tier-1 Blockchains. Solana has built a dynamic ecosystem over the past three years, has a number of strategic initiatives to create long-term value, and has emerged as a viable competitor in areas like NFTs and Blockchain gaming.
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