Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Solana [SOL] has witnessed an unprecedented appreciation since July-August 2022, thanks to its sustained rally. In fact, despite periods of bearish moves, the altcoin has done well in recent months. At the time of writing, it was changing hands at $76.41, and experts hope it will trade closer to $90 in the coming weeks.
Conversely, Solana has been in the news a lot lately because BONK is doing well and the memecoin is listed on Coinbase. Furthermore, not only has SOL hit a new 18-month high, but interest in its NFT ecosystem is also reaching a peak.
Once notorious for his breakdowns, Solana claimed in July and haven’t had a single outage since February. Solana’s developer Jacob Creech recently announced a $400,000 bounty for anyone who can take down Solana.
FYI: There is a $400,000 reward for anyone who can find code that can disable Solana
Please go ahead and find ithttps://t.co/2oxcB0EEyx
— Jacob Creech (@jacobvcreech) October 12, 2023
Solana’s reputation as an “Ethereum killer”
Even now that SOL is being touted as the “Ethereum [ETH] killer,” Anatoly Yakovenko, co-founder of Solana Labs, seems to agree with the idea of using Ethereum as layer 2 for the Solana blockchain.
Could it be possible that ethereum is a @solana L2? Probably more likely than you might think at first glance. L2s are bridge protocols that provide one-way security. In this setup, holders of Solana assets on Ethereum would have definitive guarantees that they can go back… https://t.co/XE5ETsxGIW
— Toll ?? (@aeyaovenko) July 2, 2023
Even Ethereum founder Vitalik Buterin is an admirer of the Solana protocol. When the SEC sued Binance [BNB] and Coinbase [COIN] In early June, it labeled several altcoins, including SOL, as securities. Buterin lamented the regulator’s focus on projects like Solana.
The only comment I want to make is that it makes me feel bad @solana and other projects are affected in this way. They don’t deserve it, and if Ethereum ultimately “wins” by delisting all other blockchains, that’s not an honorable way to win, and in the long run…
— vitalik.eth (@VitalikButerin) June 30, 2023
Heading into 2023, SOL has been hovering around the $10 support zone. It was already in the grip of a downtrend dating back to November 2021, when SOL was trading at $200.
We asked ChatGPT for its thoughts on Solana’s price, network health, and trajectory after giving it some relevant data points.
Can we get ChatGPT to make a Solana price prediction?
ChatGPT has been a remarkable chatbot and the updates over the past month have made ChatGPT 4.0 quite impressive. It is a powerful tool for learning and becoming well trained in a wide range of subjects. Still, we should remember that the bot is designed to mimic a human, and it is not necessarily guaranteed to be factually accurate.
The jailbreak version of ChatGPT would likely be even more inaccurate, as it is specifically instructed not to say no to anything the user requests.
And yet it is possible to make some guesses through the chatbot about what the future might bring, if we give it details about recent price movements.
What makes ChatGPT from Solana? Does the country see a path to recovery after the recent setbacks? Based on transaction fees and transaction speeds, ChatGPT seems to think Solana will be an Ethereum killer.
Source: ChatGPT
We have yet to update it on the challenges Solana and SOL investors have faced in recent months. Let’s start with the biggest dent in investor confidence:
FTX – where the free fall began
Sam Bankman-Fried “SBF” was one of the most vocal proponents of the Solana Network. The community saw him as a credible and smart entrepreneur who was CEO of one of the largest crypto exchanges, FTX.
While Binance reigned supreme in terms of volume and token pairs, FTX gave it a run for its money. Competition is also good for the sector and serves customers.
A lot has changed since then, as there is a lawsuit against SBF. It is alleged that he mixed FTX clients’ funds with those of Alameda Research to make secret venture investments. If convicted on all counts, he could face years in prison.
Not only did Solana’s reputation take a hit, but the foundation also sold a significant amount of SOL to FTX Trading and Alameda Research. This amounted to SOL 58.08 million, or 11% of the circulating supply at the time FTX filed for bankruptcy. It was valued at nearly $1.1 billion at the time.
As expected, Solana’s price fell in November, dropping 45% from November 11 to December 31, from $18.08 to $8. As rumors of FTX’s bankruptcy started circulating on November 5, SOL had already lost 50% the week before, when it was trading around $38.
As a result, SOL’s total losses from November 5, 2022 to December 31, 2022 were 79.4%.
Source: ChatGPT
ChatGPT certainly sounds optimistic, and early 2023 has gone extremely well for investors. And yet some network problems emerged, just like in 2022.
SOL exceeded expectations in January and February 2023
From January 1 to February 20, Solana rose 179.88% on the price charts, rising from $9.69 to $27.12. The explosive rally is partly attributed to Bonk; a meme coin introduced within the Solana ecosystem, modeled after Shiba Inu.
Part of the total supply of $99 trillion was dropped into the wallets of Solana users in December. The number of transactions per day showed a downward trend in the second half of December, but this reversed in early January.
The transactions soon gained momentum again. The introduction of the fun memecoin did a lot to move the community away from the dark, depressing shadow that the FTX debacle had cast on Solana.
Based on on-chain data and price action over the past few months, the jailbroken version of ChatGPT predicts that SOL’s price will reach $800 by the end of the fourth quarter.
Source: ChatGPT
We also asked the chatbot about Solana’s past outages that could damage investor confidence.
Source: ChatGPT
Predictions aside, what does price analysis tell us about Solana?
A look at Solana’s stats on the map
Source: SOL/USD, TradingView
At the time of writing, SOL was trading at $76.41, having increased in value by over 135% in just over a month.
Solana’s indicators underlined the aforementioned bullishness. While the Parabolic SAR’s dotted marks were below the price candles, the MACD deviated from the signal line after the brief threat of a bearish crossover.
Is your portfolio green? View the SOL Profit Calculator
Simply put, ChatGPT thinks highly of Solana and expects it to reach new highs in 2024. However, let’s not forget that the AI bot is a computer program. Ergo, traders are advised to do their own research before investing in the crypto assets.