I asked ChatGPT to predict Solana’s Q3 performance, it gave me this figure

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

The Solana [SOL] Basis launched its newest efficiency report on 20 July. The report mentions an enchancment in its community via the primary half of 2023, as measured by uptime and the ratio of non-voting-to-voting transactions.

SOL’s worth rose practically 30% following the information of Ripple [XRP] securing a partial victory in its authorized battle with the U.S. Securities and Trade Fee (SEC) on 13 July. But it surely couldn’t preserve its worth rally.

The U.S. District Court docket of the Southern District of New York dominated in its judgement that the sale of Ripple’s XRP tokens on crypto exchanges and although programmatic gross sales didn’t represent funding contracts; therefore, it isn’t a safety on this case. However the courtroom additionally dominated that the institutional sale of the XRP tokens violated federal securities legal guidelines.

The crypto business has lapped up the judgement immediately, producing a worth rally throughout tokens.

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.

Wouldn’t it be potential for ethereum to be a @solana L2? Most likely extra possible than you may suppose 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 will 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 [BASE] in early June, it labeled a number of altcoins, together with SOL, as securities. Even Buterin rued the style by which the regulator is concentrating on tasks like Solana.

The one remark I’ll make is that I really feel dangerous that @solana and different tasks are getting hit on this approach. They don’t deserve it, and if ethereum finally ends up “successful” via all different blockchains getting kicked off exchanges, that’s not an honorable technique 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. Simply as buyers started anticipating additional losses throughout the crypto-market in January, Bitcoin [BTC] climbed previous $17k and shifted the shorter-term sentiment to bullish.

Solana benefited massively from this shift and recorded positive aspects of 175% in 21 days. Nonetheless, it couldn’t breach the $26-$28 resistance zone, which has acted as assist since June-November 2022.

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

Essentially the most bullish state of affairs of 2023, based on AMBCrypto’s prediction bot, might see SOL valued at $75.5. Nonetheless, we are able to ask one other bot for its tackle the worth, community well being, and the trajectory of Solana after giving it some related knowledge factors.

Can we coax ChatGPT right into a Solana worth prediction if we give it sufficient data?

ChatGPT has been a outstanding chatbot and the updates of the previous month have made ChatGPT 4.0 fairly spectacular. It’s a highly effective software for studying and well-trained on an unlimited array of subjects. But, we should do not forget that the bot is engineered to imitate a human, and isn’t essentially assured to be factually correct. The jailbreak model of ChatGPT would possible be much more inaccurate, as it’s particularly instructed to not say no to something the person requests.

And but, it’s potential to acquire some guesses from the chatbot on what the long run may maintain if we offer it with particulars about latest worth actions.

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

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

FTX, the place the freefall started

Sam Bankman-Fried was some of the 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. Though Binance reigned supreme by way of quantity and token pairs, FTX was giving it a run for its cash. Competitors can also be good for the business and serves the purchasers.

Quite a bit has modified since then, and the SEC has charged Mr. Bankman-Fried with defrauding the fairness buyers of FTX, additional alleging that he commingled FTX buyer funds with Alameda’s to make undisclosed enterprise investments. He faces over 100 years in jail if convicted on all counts.

Not solely has the repute of Solana taken successful, however the basis additionally offered a big 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 whole losses from 5 November 2022 to 31 December 2022 to 79.4%.

Supply: ChatGPT

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

SOL gained by 180% in January and February 2023, exceeding all expectations

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 entire 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 circled in early January.

Is your portfolio inexperienced? Verify the Solana Revenue Calculator

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

When fed with on-chain knowledge and worth motion in latest months, the jailbroken model of ChatGPT pulled up a worth of $500 for Solana in Q3 2023.

Supply: ChatGPT

The community has confronted troublesome outages in latest months, which could harm investor confidence. The chat bot agreed.

Supply: OpenAI

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

Some imbalances stay within the south

Supply: SOL/USD, TradingView

At press time, SOL was buying and selling at $25.1. Whereas its Relative Power Index (RSI) rested above the impartial 50-level, its Cash Move Index (MFI) stood under it. Nonetheless, its On Steadiness Quantity (OBV) confirmed an uptick.

Its on-chart indicators present an ambiguous image.

Conclusion

Whereas ChatGPT predicts SOL’s worth to achieve $300-$400 this quarter, its on-chart metrics don’t present a fairly ambiguous image. It’s subsequently essential that merchants do their very own analysis earlier than investing in a crypto asset.