My first investment in $SOL was in September 2021, when I heard of Solana while exploring NFTs. Unfortunately, I was buying SOL, when it was hitting an all-time high, leaving my portfolio down more than 100% now.
But I still have my SOL sitting in my wallet, and I am waiting patiently for Solana to recover. In this text, I want to explain why.
Why do I believe in Solana?
Back in 2021, SOL indeed sounded solid, and it was really innovative in terms of tech, with Higher TPS & Low Transaction Costs. Now it still has a huge potential, and with good tech leadership, it can do a lot more for the space besides just pumping and dumping.
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What does it take for Solana to recover, and how long should we wait?
Although I still believe in the project, given the crash, I am not sure how long it will take for it to recover. Just a few weeks ago, we saw this situation with BONK. Joke projects are not uncommon on the market, but unfortunately, this particular joke did not turn out in favor of SOL. I do not see any prospects for BONK (and with it, SOL) to grow. I think meme coins only have a chance if Elon Musk is behind them.
Also recently, there was insider information that Solana could become part of the Google empire. It would be a funny combination for me, but I don’t think that’s possible here and now.
In the long run, I think NFT projects leaving Solana are good for SOL. Don’t get me wrong, not all the projects were bad; in fact, some of those were very innovative. But, I guess only 2-3% of SOL projects are sustainable enough to push the limits beyond, but now those are hurt as well due to the crash. Hence the transition to ETH. ETH has always been very reliable for NFTs, despite the high costs.
And that brings me to what inspires me most about Solana and will contribute to its recovery: ETH is limited by its speed (hence the Low TPS) and Transactional Costs, further limiting its scalability. All improvements to this aspect might give it a new all-time high.
What do I expect from the prices in the market, and should you buy $SOL now?
Solana’s growth last month is nothing very special, as every coin is going up and down with the market. SOL to reach its all-time high needs a miracle, but as I say it can happen given the technical capabilities. By the end of 2023, there might be chances of SOL bouncing around 70-80$ as the market corrects itself.
As for my strategy of earning, I never did trading much, as I was focused on buying as much as I could, given the tech behind it. And now I am not looking to invest more in SOL. I did buy some when it went below 15$ — I did try to recover some losses by trying to lower the average overall cost, but unfortunately with no profits.
I also already mentioned ETH above. As for this coin, we will see good growth of Ethereum indeed, as the majority of Metaverse projects are being built on ETH. Many of those have mature goals set for the next year, which means we will see a serious development in the overall Ethereum ecosystem.
I am expecting ETH to push the $2000 mark before Christmas this year, given that there are again no major other scams/conflicts happening in the space.