Source: @DefiIgnas
CHALLENGE FOR SOLANA:
• Unlock concerns: The unlocking of $2.4B in March 2024 raises concerns.
• Competition: Solana is currently facing strong competitors such as:
Sui ($SUI):
• 400% growth in 6 months compared to 68% of $SOL.
• TVL increased tenfold in a year, reaching $1.7B.
• Prominent ecosystem: advanced wallets, feature-rich dApps, excellent UI/UX.
• However, the low market cap of SUI may indicate that the upward momentum has already been priced in.
• Monad and MegaETH: Upcoming projects targeting Solana's "high-performance chain" narrative.
• Berachain: Aiming to attract Solana's degen community.
The dominance of Ethereum:
• Ethereum operates at a "different level", leveraging decentralization, ETF capital flow, and attractive L2 solutions like MegaETH.
• Nevertheless, UX issues remain Solana's advantage in attracting new users.
CURRENT STRENGTHS OF SOLANA:
• Memecoin Narrative: Solana still leads, but utility token trends are challenging its appeal.
• The popularity of AI Agents: Platforms like Base are competing with Solana, with Virtuals being a prominent name.
• Superior UX: Solana still has no rivals in user experience, evidenced by Pudgy Penguins choosing Solana.
DRIVING FACTORS FOR SOLANA IN THE FUTURE:
• The potential launch of $SOL ETFs could significantly increase its value.
• Supportive crypto perspectives from governments could lead to ETFs for major tokens, benefiting Solana.
Although Solana maintains its strengths, it is currently on the defensive against competitors and changes in market narratives.
The timing of the next price increase for $SOL remains unclear, with market factors and competition playing a decisive role.
