I asked ChatGPT about Solana’s future, its response was baffling

Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.

Solana [SOL] has witnessed a surge in worth not seen since July-August 2022, because of the continuing bull run. It was exchanging arms at $38.85 on the time of writing. Consultants are hoping for it to commerce inside the $40-$50 vary within the coming week.

As soon as infamous for its outages, Solana claimed in July to haven’t suffered any outages since February. The truth is, Solana’s developer Jacob Creech lately introduced a $400,000 bounty for anybody who may flip Solana off.

Fyi there’s a $400k reward for anybody that may discover code that may flip off Solana

Please go forward and discover ithttps://t.co/2oxcB0EEyx

— Jacob Creech (@jacobvcreech) October 12, 2023

Learn Solana’s [SOL] Value Prediction 2023-24

Solana’s repute as an “Ethereum killer”

Whilst SOL is touted to be the “Ethereum [ETH] killer,” Solana Labs co-founder Anatoly Yakovenko appears to be in settlement with the thought of utilizing Ethereum as a layer-2 for the Solana blockchain.

Would it not be potential for ethereum to be a @solana L2? Most likely extra seemingly than you would possibly assume at first look. L2s are bridge protocols that present a technique safety. On this setup, holders of solana property on ethereum would have finality ensures that they’ll exit again… https://t.co/XE5ETsxGIW

— toly ?? (@aeyakovenko) July 2, 2023

Even Ethereum founder Vitalik Buterin is an admirer of the Solana protocol. When the SEC sued Binance [BNB] and Coinbase [COIN] in early June, it labeled a number of altcoins, together with SOL, as securities. Buterin rued the way through which the regulator is concentrating on tasks like Solana.

The one remark I’ll make is that I really feel unhealthy that @solana and different tasks are getting hit on this manner. They don’t deserve it, and if ethereum finally ends up “profitable” by means of all different blockchains getting kicked off exchanges, that’s not an honorable method to win, and in the long run…

— vitalik.eth (@VitalikButerin) June 30, 2023

Heading into 2023, SOL was hovering across the $10 assist zone. It was already within the grips of a downtrend that stretched again to November 2021, again when SOL was buying and selling at $200.

We requested ChatGPT for its tackle the worth, community well being, and the trajectory of Solana after giving it some related information factors.

Can we coax ChatGPT right into a Solana worth prediction?

ChatGPT has been a exceptional chatbot, and the updates of the previous month have made ChatGPT 4.0 fairly spectacular. It’s a highly effective instrument for studying and well-trained on an unlimited array of subjects. But, we should keep in mind that the bot is engineered to imitate a human, and isn’t essentially assured to be factually correct.

The jailbreak model of ChatGPT would seemingly be much more inaccurate, as it’s particularly instructed to not say no to something the consumer requests.

And but, it’s potential to acquire some guesses from the chatbot on what the longer term would possibly maintain if we offer it with particulars about current worth actions.

So, what does ChatGPT make of Solana? Does it see a path to restoration after its current setbacks? Primarily based on transaction charges and transaction speeds, ChatGPT appears to assume Solana will probably be an Ethereum killer.

We’re but to tell it of the challenges that Solana and SOL buyers have confronted in current months. Let’s begin with the largest dent in investor confidence –

FTX—the place the free fall started

Sam Bankman-Fried “SBF” was one of the vital vocal proponents of the Solana community. The group noticed him as a reputable and good entrepreneur who was the CEO of one of many largest crypto exchanges, FTX.

Despite the fact that Binance reigned supreme when it comes to quantity and token pairs, FTX was giving it a run for its cash. Competitors can be good for the business and serves the purchasers.

Loads has modified since then as there’s a trial happening towards SBF. It has been alleged he commingled FTX buyer funds with these of Alameda Analysis to make undisclosed enterprise investments. He may face years in jail if convicted on all counts.

Not solely did the repute of Solana take a success, however the basis additionally bought a major quantity of SOL to FTX Buying and selling and Alameda Analysis. This amounted to 58.08 million SOL, or 11% of the circulating provide on the time FTX filed for chapter. It was valued at near $1.1 billion on the time.

As anticipated, the worth of Solana nosedived in November and declined by 45% from November 11 to 31 December, falling from $18.08 to $8. With rumors of FTX’s insolvency circulating from November 5, SOL had already misplaced 50% the earlier week, when it was buying and selling close to the $38 mark.

This took SOL’s complete losses from 5 November 2022 to 31 December 2022 to 79.4%.

Supply: ChatGPT

ChatGPT definitely sounds optimistic, and early 2023 went terribly nicely for buyers. And but, some community points cropped up, simply as they’d in 2022.

SOL exceeded expectations in January and February 2023

From 1 January to twenty February, Solana gained 179.88% on the worth charts and rallied from $9.69 to $27.12. The explosive rally has been credited partially to Bonk; a meme coin launched inside the Solana ecosystem modeled after Shiba Inu.

Part of the whole 99 trillion provide was airdropped into the wallets of Solana customers in December. The transaction count per day was on a downtrend within the second half of December, however this rotated in early January.

Quickly sufficient, the transactions had been choosing up tempo as soon as extra. The introduction of the enjoyable memecoin did a lot to deliver the group away from the darkish, miserable shadow the FTX debacle had forged on Solana.

When fed with on-chain information and worth motion in current months, the jailbroken model of ChatGPT predicted that SOL’s worth will attain $800 by the tip of This fall.

Supply: ChatGPT

We additionally requested the chatbot about Solana’s outages previously which could damage investor confidence.

Supply: ChatGPT

Predictions apart, what does worth evaluation inform us about Solana?

A take a look at Solana’s on-chart metrics

Supply: SOL/USD, TradingView

At press time, SOL was buying and selling at $38.85.

Whereas SOL’s Relative Power Index (RSI) rested beneath the impartial 50-level, its Cash Movement Index (MFI) rested a lot above it. In conclusion, the bears are engaged in a tug of conflict with the bears.

Is your portfolio inexperienced? Take a look at the SOL Revenue Calculator

ChatGPT predicts too optimistic a efficiency for Solana this quarter. Merchants are nevertheless suggested to do their very own analysis earlier than investing in a crypto asset.