One crypto veteran says Solana (SOL) is currently going through a similar phase to what Ethereum (ETH) experienced four years ago.
Crypto venture fund Variant co-founder Spencer Noon tells his 112,100 Twitter followers Solana’s current issues won’t matter a few years down the road.
“It feels to me like SOL is going through a similar trough of disillusionment as ETH did back in 2018. In bear markets prices aren’t just reflexive – sentiment is too. Solana has a vibrant developer ecosystem and its downtime issues are solvable. This will be obvious in retrospect.”
Solana has suffered a series of network outages in the past 12 months that have negatively impacted SOL’s price. Solana’s network went down for 4.5 hours earlier this month after a seven-hour network outage between April 30th and May 1st when the project’s mainnet beta cluster “ceased producing blocks as a result of stalled consensus.”
The Ethereum competitor also dealt with publicized network and performance problems in December and January, as well as a previous outage last September.
Solana, the ninth-largest crypto by market cap, is trading at $36.52 at time of writing.
Noon also argues that the top decentralized finance (DeFi) projects have proven they can perform well in a bear market.
“BIG takeaway from the past few weeks is that DeFi blue chips perform well in extreme volatility. While crypto TradFi was busy blowing itself up, most protocols on ETH functioned effortlessly. Crazy part is the size of DeFi could 100x and they’d still work well.”
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