Critics within the crypto community are questioning Solana's stability, branding it the weakest top 10 blockchain. With SOL's underwhelming performance and accusations of being a "scam chain," investors are on alert. Explore the concerns and technical weaknesses gripping the Solana network.
The underperformance of Solana is now impossible to ignore. While Bitcoin and Ethereum maintain relatively solid levels, SOL is currently trading nearly 50% below its all-time high. This valuation gap becomes particularly problematic when compared to other layer 1 networks that have better weathered the market correction.
The numbers speak for themselves: since November 2024, SOL has been accumulating bearish signals. The token struggles to defend key support levels, and every rebound attempt results in violent rejection. Trading volumes also show traders’ growing disinterest, who now prefer to position themselves in assets deemed more resilient.
The 2-week Order Block is even more revealing. Massive smart money distribution could push Solana’s price down to $40 in the coming months.
Beyond simple price action, Solana faces recurring structural problems. Network outages remain a major pain point. Despite promises of improvement, the blockchain has experienced several complete shutdowns in recent months, undermining the credibility of an infrastructure that claims to be ultra-performant.
Validator concentration also raises questions. Unlike Ethereum or Bitcoin, the Solana network suffers from excessive centralization, with a handful of actors controlling a disproportionate share of staking. This architecture makes the network more vulnerable to coordinated attacks and manipulation.
Despite everything, on-chain data, such as TVL and stablecoins, continue to grow. Moreover, Solana ETFs have outperformed those of ETH and BTC in recent weeks. Even though the medium term seems blocked by massive profit-taking, Solana remains a giant of tomorrow.
Facing these difficulties, other blockchains are capitalizing on Solana’s weaknesses. Avalanche, Polygon and Base are now attracting developers seeking stability and decentralization. These networks offer more balanced compromises between scalability and security, without sacrificing availability.
The layer 1 market is ruthless. Institutional investors, increasingly present, favor proven infrastructure. Ethereum remains the undisputed reference for institutional DeFi, while new generations like Sui or Aptos chip away at market share with innovative technical propositions. Solana finds itself stuck in an uncomfortable middle ground.
The question of long-term viability will always arise. But the correction will have more to do with a tense and uncertain context rather than a loss of fundamentals.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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