Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Solana [SOL] has witnessed a surge in value not seen since July-August 2022, thanks to the ongoing bull run. It was exchanging hands at $38.85 at the time of writing. Experts are hoping for it to trade within the $40-$50 range in the coming week.
Once notorious for its outages, Solana claimed in July to have not suffered any outages since February. In fact, Solana’s developer Jacob Creech recently announced a $400,000 bounty for anyone who could turn Solana off.
Fyi there’s a $400k reward for anyone that can find code that can turn off Solana
Please go ahead and find ithttps://t.co/2oxcB0EEyx
— Jacob Creech (@jacobvcreech) October 12, 2023
Read Solana’s [SOL] Price Prediction 2023-24
Solana’s reputation as an “Ethereum killer”
Even as SOL is touted to be the “Ethereum [ETH] killer,” Solana Labs co-founder Anatoly Yakovenko seems to be in agreement with the idea of using Ethereum as a layer-2 for the Solana blockchain.
Would it be possible for ethereum to be a @solana L2? Probably more likely than you might think at first glance. L2s are bridge protocols that provide one way security. In this setup, holders of solana assets on ethereum would have finality guarantees that they can exit back… https://t.co/XE5ETsxGIW
— toly ?? (@aeyakovenko) July 2, 2023
Even Ethereum founder Vitalik Buterin is an admirer of the Solana protocol. When the SEC sued Binance [BNB] and Coinbase [COIN] in early June, it labeled several altcoins, including SOL, as securities. Buterin rued the manner in which the regulator is targeting projects like Solana.
The one comment I’ll make is that I feel bad that @solana and other projects are getting hit in this way. They don’t deserve it, and if ethereum ends up “winning” through all other blockchains getting kicked off exchanges, that’s not an honorable way to win, and in the long term…
— vitalik.eth (@VitalikButerin) June 30, 2023
Heading into 2023, SOL was hovering around the $10 support zone. It was already in the grips of a downtrend that stretched back to November 2021, back when SOL was trading at $200.
We asked ChatGPT for its take on the price, network health, and the trajectory of Solana after giving it some relevant data points.
Can we coax ChatGPT into a Solana price prediction?
ChatGPT has been a remarkable chatbot, and the updates of the past month have made ChatGPT 4.0 quite impressive. It is a powerful tool for learning and well-trained on a vast array of topics. Yet, we must remember that the bot is engineered to mimic a human, and is not necessarily guaranteed to be factually accurate.
The jailbreak version of ChatGPT would likely be even more inaccurate, as it is specifically instructed not to say no to anything the user requests.
And yet, it is possible to obtain some guesses from the chatbot on what the future might hold if we provide it with details about recent price movements.
So, what does ChatGPT make of Solana? Does it see a route to recovery after its recent setbacks? Based on transaction fees and transaction speeds, ChatGPT seems to think Solana will be an Ethereum killer.
Source: ChatGPT
We are yet to inform it of the challenges that Solana and SOL investors have faced in recent months. Let’s start with the biggest dent in investor confidence –
FTX—where the free fall began
Sam Bankman-Fried “SBF” was one of the most vocal proponents of the Solana network. The community saw him as a credible and smart entrepreneur who was the CEO of one of the largest crypto exchanges, FTX.
Even though Binance reigned supreme in terms of volume and token pairs, FTX was giving it a run for its money. Competition is also good for the industry and serves the customers.
A lot has changed since then as there is a trial going on against SBF. It has been alleged he commingled FTX customer funds with those of Alameda Research to make undisclosed venture investments. He could face years in jail if convicted on all counts.
Not only did the reputation of Solana take a hit, but the foundation also sold a significant amount of SOL to FTX Trading and Alameda Research. This amounted to 58.08 million SOL, or 11% of the circulating supply at the time FTX filed for bankruptcy. It was valued at close to $1.1 billion at the time.
As expected, the price of Solana nosedived in November and declined by 45% from November 11 to 31 December, falling from $18.08 to $8. With rumors of FTX’s insolvency circulating from November 5, SOL had already lost 50% the previous week, when it was trading near the $38 mark.
This took SOL’s total losses from 5 November 2022 to 31 December 2022 to 79.4%.
Source: ChatGPT
ChatGPT certainly sounds optimistic, and early 2023 went extraordinarily well for investors. And yet, some network issues cropped up, just as they had in 2022.
SOL exceeded expectations in January and February 2023
From 1 January to 20 February, Solana gained 179.88% on the price charts and rallied from $9.69 to $27.12. The explosive rally has been credited partially to Bonk; a meme coin introduced within the Solana ecosystem modeled after Shiba Inu.
A part of the total 99 trillion supply was airdropped into the wallets of Solana users in December. The transaction count per day was on a downtrend in the second half of December, but this turned around in early January.
Soon enough, the transactions were picking up pace once more. The introduction of the fun memecoin did much to bring the community away from the dark, depressing shadow the FTX debacle had cast on Solana.
When fed with on-chain data and price action in recent months, the jailbroken version of ChatGPT predicted that SOL’s price will reach $800 by the end of Q4.
Source: ChatGPT
We also asked the chatbot about Solana’s outages in the past which might hurt investor confidence.
Source: ChatGPT
Predictions aside, what does price analysis tell us about Solana?
A look at Solana’s on-chart metrics
Source: SOL/USD, TradingView
At press time, SOL was trading at $38.85.
While SOL’s Relative Strength Index (RSI) rested below the neutral 50-level, its Money Flow Index (MFI) rested much above it. In conclusion, the bears are engaged in a tug of war with the bears.
Is your portfolio green? Check out the SOL Profit Calculator
ChatGPT predicts too positive a performance for Solana this quarter. Traders are however advised to do their own research before investing in a crypto asset.
