Solana has experienced a significant downturn in December, dropping 17.4% due to the volatility in the cryptocurrency market. Despite its previous impressive performance, questions have arisen about its sustainability.
Analysts attribute this downturn to the limitations of the Solana mainnet, which has struggled with network congestion and slower transaction times. In response to these challenges, Solaxy has emerged as a layer-2 scaling solution to alleviate congestion issues.
The introduction of Solaxy's new token, $SOLX, has generated interest among investors, with projections suggesting potential growth. However, caution is advised when investing in the cryptocurrency market, and diversification is recommended to mitigate risk.
The success of Solaxy's layer-2 solution will play a crucial role in determining Solana's future trajectory.