Solan's price has risen by 110% over the past three months.
SOL ended February in the red and is likely to close March with a 4% loss, but January ended with SOL up 140%. Cryptocurrency analysis firm Messari highlighted Solan's growth potential as the network copes with recent crashes and other challenges. Solan's price is negative on the monthly chart in March, with SOL/USD at $20.88 currently down 3% over the past 30 days.
Noteworthy, Solan's price has fallen by 80% over the past year and by about 91% from its historical peak of $260 reached in November 2021. However, the cryptocurrency is on track for its best quarterly performance in almost two years. This is despite downward pressure from the network's problems since the end of last year, and SOL's return over the past three months is more than 100%.
Messari points to Solan's growth potential
Cryptocurrency market analysis firm Messari recently highlighted the growth of Solan, even with the proliferation of FUD, noting that trying to compare the blockchain with some L2s in terms of TVL does not reflect the whole picture. "Comparing Solan's TVL with other growing blockchains does not reflect the full situation.
Usage was driven by use cases unrelated to the dominant TVL, such as derivatives, NFTs and DePIN networks. If Solana decides to launch incentives, we could quickly see volume approaching the levels of the largest L2s," the Messari researchers wrote.
According to Messari, Solan's developers are focusing on simplifying the implementation of innovative DeFi strategies, automating in-chain instructions and implementing native Web3 websites, among other things. Moving in this direction could prove crucial to the ecosystem Solana, and a larger party is very likely.
What's next for Solan's price?
Data from TradingView show that the 3-month candle for SOL/USD currently stands at +110%. This is the best quarterly return since Q2 2021, when the price of Solan rose nearly 300%, and bulls propelled the cryptocurrency higher.
Looking at the monthly chart, Solan's returns are highest in January, with the monthly closing at $23.93, a 30-day gain of 140%. The last time SOL/USD made a bigger gain on the monthly chart was in August 2021, when prices jumped by 195%.
February and March were not so profitable for bulls, with prices 9% lower in the second month of 2023. Analysis of the weekly SOL chart shows a slight advantage for sellers, with the weekly RSI below the 50 line and prices having a tough time rising toward $40.
If the decline continues, a break below $20 could risk a new sell-off to the $16 level.