Like other cryptocurrencies starting off 2022 on a low, Solana saw a “harsh” price correction – a 48.5% correction year-to-date. But it leads the staking charts with $35 billion in value locked.
Analysts say Solana’s price decline may be because of the four network outages in late 2021 and early 2022. The latest incident was on January 7 due to a distributed denial-of-service (DDoS) attack. As such, Solana Lab developers had to update the code.
But investors are concerned about the centralization caused by the costs of being a Solana validator. Experts recommend a 12 core 2.8 GHz CPU, 256 GB memory, high-speed 1 TB SSD drives and a low-latency internet connection to help attain 400 millisecond block times. UltraXBT believes Solana is cool for a centralized corporate state-sync machine.
In early-November 2021, Solana’s primary decentralized application metric showed weakness after the network’s TVL began to stall at $15 billion. The network’s DApp saw a 50% drop in three months as the indicator reached its lowest level since September 8. In contrast, Fantom’s TVL is $9.5 billion after doubling in three months. Terra LUNA also spiked to $23.2 billion with a 87% increase in TVL. Solana Ventures, on November 5, partnered with FTX and Lightspeed Venture to launch a $100 million fund for the sector.