Solana’s Short Squeeze and the Path to Long-Term Success
Solana has surged over 24% reaching a peak of $45, and an impressive 80% in the last 30 days.
Analysts attribute this to a classic short squeeze, driven by a narrative that suggests Solana is set to replace Ethereum. Despite setbacks, such as the FTX collapse, the Solana community persevered, and its developer base grew by over 40% year over year. The debate between Solana and Ethereum has gained prominence, with Solana proponents highlighting its faster, more scalable, and cost-effective proof-of-stake blockchain technology. When comparing SOL/BTC to ETH/BTC, Solana has shown more attractive price action.
Solana’s resilience, akin to Ethereum’s past, has attracted investor attention, leading to a potential short squeeze. Solana’s dedicated developer community, which has grown even after the FTX incident, is a crucial factor in its resistance to short sellers. Solana currently boasts nearly 1,000 full-time developers, compared to Ethereum’s 6,000. While Solana’s market cap is a fraction of Ethereum’s, it aims for long-term success, though it still faces challenges related to the liquidation of FTX’s assets. Despite these obstacles, Solana enthusiasts are optimistic about its future prospects.
Clever Robot News Desk 3rd November 2023
