Another crypto analyst says that another altcoin is emerging as a competitor of Solana (SOL) as SOL faces technical hurdles.
In a new video, the channel host Coin Bureau nicknamed Guy said to two million subscribers YouTube said that investors were looking for an alternative to Solana after the network was congested and attacks affected the reliability of the blockchain.
Analysts say investors are now looking at the platform Near.
“Near Protocol seems to be the main audience of interest for these users and investors.
The two blockchains have a similar architecture, they use the same programming language, the software companies that build them are all based in the same region, and they are backed by the same VCs.”
The analyst points to other reasons why the SOL price could struggle despite updates, developments and partnerships.
“SOL is an altcoin and that means its price action is highly correlated with BTC. As you may have noticed, Bitcoin has been struggling since December 2…Also, ncirculating supply of SOL has increased from 20 to 22 million.”
Despite SOL's current performance, Guy says that the altcoin is likely to retest its previous all-time high, once the crypto market enters a well-defined bull run. than.
" There are dozens of different institutions investing in SOL and a large amount of capital inflow since December despite SOL's poor price action.
OpenSea's recent support for Solana seems to have led to user demand for SOL.”