Solana (SOL -0.26%), buying and selling at simply $12.25, is down greater than 93% for the yr. That makes it one of many worst-performing cryptos of 2022. Making issues even worse, Solana was caught up within the drama surrounding failed crypto trade FTX (FTT -3.31%) because of the enterprise capital investments that former FTX Chief Govt Officer Sam Bankman-Fried and his affiliated corporations made in Solana and its ecosystem. Small surprise traders proceed to have fears about Solana and FTX contagion.
However trying underneath the floor, I feel there’s loads to be enthusiastic about for Solana in 2023. There are particularly two high-growth areas that could possibly be setting Solana up for a giant 2023.
Large progress in NFTs
Solana continues to construct market share quickly within the non-fungible token (NFT) market. In response to crypto analysis agency Messari, quarter-over-quarter progress in NFTs for Solana is operating at a blistering 19%. Solana is now second within the NFT market, trailing solely Ethereum (ETH -0.09%) when it comes to transaction quantity and exercise, and that hole continues to shut.
Waiting for 2023, Solana is preparing for an occasion that some are calling #MintORama. Within the first quarter of 2023, the Helium (HNT -7.09%) blockchain community will formally migrate over to Solana. When it does, it is going to result in the minting of 1 million new NFTs, making it the most important NFT mint in Solana historical past. It would additionally change the way in which individuals take into consideration NFTs since every new NFT shall be tied to a wi-fi hotspot within the Helium community.
Sure, the NFT market cratered in 2022, so possibly huge progress in NFTs will not be precisely what traders wish to be listening to proper now. Nevertheless, Solana has clearly proven that it may well problem Ethereum immediately in an space the place many individuals thought Ethereum had an amazing benefit. Furthermore, Solana has proven that it has community capability to deal with large transaction quantity.
Large progress in Web3
Regardless of all of the naysayers, Solana continues to press on with its improvement of Web3 functions and use-case eventualities. In November, Solana unveiled its 2023 calendar of hacker and developer occasions, and will probably be a really international tour, from New York Metropolis and Austin, Texas, within the U.S., to Berlin, Istanbul, Vietnam, and India. Furthermore, Solana unofficially made the complete month of December “DEVcember” in an try to rally Solana builders across the blockchain community. Solana needs to make it as simple and as enticing as doable to develop for Solana.
All of that is setting the stage for an enormous progress in Web3 that weaves collectively two high-profile tasks from 2022: the launch of the Solana Pay community and the announcement of the Solana Cell initiative. Put all of it collectively, and it may assist to catapult Solana into the lead relating to Web3 funds and e-commerce. As Solana defined on Twitter, the Web3 future will embody “paying for a Web3 espresso with a Web3 telephone with a Web3 fee protocol on a Web3 point-of-sale.” This end-to-end management of the transaction is one thing that would give Solana a majar benefit over its rivals.
Can Solana ship on this promise?
The massive query, in fact, is whether or not Solana can ship on this progressive imaginative and prescient of the longer term. In 2022, Solana repeatedly encountered issues with community outages, so some blockchain specialists are decidedly skeptical. And, with the SBF-FTX drama persevering with to pull on, some are questioning if Solana will proceed to see the kind of drop-off in community exercise that occurred in November. Issues bought so dangerous for Solana that Cardano (ADA -0.03%) was even providing to make Solana a “sidechain” earlier this month.
However, Solana has stated it has greater than 30 months of runway left, so there isn’t any want to fret about Solana all of a sudden burning all its cash and shutting down. Furthermore, Solana is making important strides in high-profile, consumer-facing areas the place it’s simple to trace Solana’s progress and maintain it accountable for hitting key milestones. Many individuals agree that Web3 goes to be one of many subsequent massive issues in expertise, and Solana is positioning itself to steer the cost within the crypto world.
I am bullish on Solana for each the brief time period and the long term. I view Solana as a deeply discounted worth crypto that has merely been crushed down too far and for too lengthy by the market. Keep in mind, one yr in the past, Solana was a $260 crypto and one of many buzziest names within the blockchain world. Solana might not regain that stage in 2023, however I am satisfied that the yr forward goes to be a giant one for Solana.