Cryptocurrency Market Turmoil: Analyzing Solana's Prospects
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 09 2026
0mins
Source: Fool
- Market Collapse: The cryptocurrency market has faced a brutal sell-off since mid-last year, with the total market cap plummeting 45% from last year's peak of $4.4 trillion, indicating that investors are trimming their exposure to risk assets amid rising economic and political uncertainties.
- Solana's Rise: Despite Solana's native cryptocurrency dropping 68% from its all-time high, its appeal as a cheaper and faster alternative to Ethereum is drawing more developers, showcasing its potential in the decentralized applications space.
- User Activity Changes: Daily active wallet addresses on the Solana network have decreased from 9.1 million in January last year to 4.8 million currently; however, this figure is still over tenfold higher than three years ago, suggesting a long-term increase in the network's popularity.
- Investment Risk Advisory: While Solana may be attractive to investors who believe in decentralized applications, its seven service outages from 2020 to 2024 indicate it cannot match Ethereum's perfect uptime, thus advising investors to maintain small positions to mitigate risk at the current price.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
