The price of Solana has dropped by 48% year-to-date and reports show that the use of its decentralized app is fading out but traders can remain hopeful. As it stands, 2022 has not been a particularly good year for cryptocurrencies until now. To date, the total market capitalization of cryptocurrency has dropped by 21% to $1.77 trillion.
The correction of SOL has been quite brutal, which presents a correction of 48.5% year-to-date. The cryptocurrency leads the staking charts with a total value locked of $35 billion, which is equivalent to around 74% of the SOL tokens currently in circulation.
Solana Has Taken A Hit Of 50%
There have been multiple reasons which can be identified for this underperformance of Solana which also includes the four network outages that took place in the latter half of 2021 and early 2022. The latest incident took place on the 7th of January and was attributed to a distributed denial-of-service attack, which caused the developers of Solana Labs to constantly update the code and start rejecting different forms of requests.
However, most investors seem pretty concerned about the centralization which has been caused due to the costs of being a validator of Solana. In order to achieve the 400 millisecond block times, the recommended hardware does include a 12 core 2.8Ghz CPU, 256 GB memory, with a low-latency network connection.
The primary decentralized application of Solana has been showing weakness and continued to do so since November after the total value locked of the network began to start lingering at a price of $15 billion. Recent data highlight that the DApp of this cryptocurrency saw a decrease of 50% in three months with the indicator reaching its lowest possible level since the 8th of September.
This decrease of interest in the DApps of Solana has also been reflected in its futures open interest, which managed to peak at $2 billion on the 6th of November.
