Solana retraces gains as analysts say multi-week rally is a correction
Solana has outperformed all other blue-chip cryptocurrencies, with a 50% gain in October and an increase of more than 250% year-to-date, according to CoinGecko data. Some analysts argue that the altcoin rally is a price correction from long-term undervaluation.
CoinShares Research Analyst Max Shannon told The Block that solana is riding bitcoin's move higher, and that "the rally is primarily driven by hype." YouHodler Head of Markets Ruslan Lienkha said "the recent spike looks more like a price recovery as the token was undervalued for a long period of time."
Solana developer fundamentals are strong
Ryze Labs Founder and Managing Partner, Matthew Graham, points out the strong developer fundamentals behind layer 1.
âFrom day one, Solana made it a mission to gain mindshare among developers looking to launch unique platforms and products. "The price movement reflects the effort put in, from engineering to community development, that has made Solana a dynamic ecosystem full of useful products," Graham told The Block. Managing partner Ryze Labs added that he âdoesn't see Solana's momentum slowing down.â
