Solana (SOL) has experienced a price surge of 110% in the first quarter of 2023, making it the best quarter for the cryptocurrency since Q2 2021. Although the price of SOL has fallen 4% in March, it remains positive for the quarter as a whole, with January ending with a staggering 140% increase.
Despite the challenges Solana has faced over the past year, including network outages and other difficulties, crypto intelligence firm Messari has highlighted the cryptocurrency’s growth potential. According to Messari, Solana developers are focusing on simplifying the deployment of innovative DeFi strategies, automation of on-chain instructions, and deployment of Web3-native websites. The pivot towards these efforts could prove key to the Solana ecosystem, leading to greater adoption.
Looking ahead, TradingView data shows that the 3-month candle for SOL/USD is currently poised at +110%, the best quarterly return since Q2 2021, when the price of Solana rose almost 300%. However, February and March have not been as profitable for bulls, with prices down 9% in February, and SOL facing an uphill task towards $40. On the downside, a breakdown below $20 could risk a new dump to $16.
Despite these challenges, Solana’s growth potential remains strong, and if the cryptocurrency turns on incentives, the volume could approach parity with the top L2s. With the focus on innovative DeFi strategies and the deployment of Web3-native websites, Solana’s adoption is likely to increase, making the future bright for the cryptocurrency.
