SOLANA ECOSYSTEM FUNDING IS MOSTLY GONE

Alameda was one the largest investors in project building on Solana. Although some Solana projects have the vow to stay, another has been migrating elsewhere. Two projects that were built on Solana are planning to migrate to Polygon because it offers the ground to build on Ethereum layer two which is an offer they can not refuse given that the Solana ecosystem funding is mostly gone. A few days later Solana SOL fall out of the top 20 cryptos by market cap and it is at its lower price in almost 2 years. It didn't help that there was no shortage of headlines pointing out that SOL has fallen out by the largest percentage of any large-cap cryptocurrency besides Terra Luna.

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Just as Solana FUD has reached critical mass, Vitalik Butteren caused a relief rally SOL with a Tweet. Vitamin was praised for its positivity but it is important to point out that this same support could be applied to every crypto project out there. Almost every crypto project has opportunistic money people and most of the people have been washed out as well. The difference between Solana and other struggling projects is that Solana has built a significant amount of ICO funding and the term has two years runway.

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As long as Solana can survive the bear market, then it is likely that it will recover. Whether it can compete again is another question entirely. It looks like Ethereum is going to keep the smart-contract cryptocurrency crown and that means the so-called Ethereum killers are going to have to find their own niche if they want to compete. I am confident that will manage to do this. The only thing that Solana's close relationship with FTX, Alameda, and SBF means is that it is likely to face addiction regulatory scrutiny.

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If you are wondering how lower SOL coin could go, it all depends on what the rest of the crypto market will doing. I think we could see another 40% to 50% crash in the coming months which will need another 40% to 50% drop for SOL coin. This means we will see a similar declaim in other similar large-cap too and some of them are showing bigger signs of weakening than Solana. Meme coins arguably fall into this category because their value is based almost entirely on speculation and speculation has almost completely disappeared. This made their price action very sensitive to almost small negative news as evidenced by Dogecoin's recent dip.