Synopsis: Solana plunged 40% after President Trump’s tariff news shook global markets. Yet its network stayed strong, investor confidence grew, and recovery signs suggest renewed long-term potential.
Last Friday, Solana faced a sharp 40% price drop amid a wider crypto market crash triggered by a surprising tariff announcement. President Trump’s tariff news on Chinese imports caused panic, wiping billions from the market, including heavy losses for Solana.
Network Performance Of Solana
Despite the crash, Solana’s network performed strongly. It processed over 1,225 transactions per second with fast block finalization times of around 350 milliseconds.
This impressive performance far outshines Ethereum’s reduced throughput during the turmoil, which dropped to just 26 transactions per second with slower block times. Solana’s technical robustness helped it maintain network stability amid the chaos.
Buyer Confidence
On-chain data reveals a positive trend for Solana holders. Long-term holders have cut down on net sales by nearly half, showing confidence in the asset’s future.
On the other hand, short-term holders increased their positions significantly, accumulating more Solana despite the volatility. This buying behavior signals strong belief in Solana’s longer-term value.
The market crash was triggered by President Trump’s announcement of 100% tariffs on all Chinese imports set to begin November 1. This announcement sent shockwaves through global markets, sparking a rapid selloff across cryptocurrencies and other assets.
Solana’s price fell sharply from around $237 to lows near $173. However, by October 16, Solana staged a recovery, rising about 12% to trade near $194, showing resilience after the shock.
Is Solana a Good Buy Now?
Experts suggest that buying Solana post-crash could be a smart move for risk-tolerant investors. The network’s strong fundamentals and high transaction capacity set it apart from competitors.
Institutional interest, such as a $50 million purchase by ARK Invest at a discount, highlights growing confidence. Though risks remain such as potential future market volatility and macroeconomic uncertainty.
In summary, Solana’s recent crash was part of a broader market shakeout from geopolitical tensions, not due to network weakness. The price at around $194 offers a discount compared to previous highs, making it appealing to investors willing to navigate crypto’s ups and downs. However, cautious entry and diversified strategies are advisable given lingering risks.
This balance of strong technical performance and active buying amid a turbulent market makes Solana a crypto asset worth watching closely.
Written By Fazal Ul Vahab C H