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Does Putin Decide the Fate of Solana and, by Extension, the Crypto Market?

2 years ago

The brewing political situation in Russia is unexpectedly influencing the cryptocurrency market. Anyone who has been following the recent geopolitical contentions would know about Russian President Vladimir Putin’s plans to bring the good old Soviet Union into existence. The result is the occasional artillery parades near international borders and threats to former Soviet Union countries. According to popular opinion, Russia is not pleased with China’s emergence as the Nemesis of the United States and is desperately trying to reclaim its position on the global stage.

However, Putin taking autocratic stances or threatening the former Soviet Union countries is not what has bothered investors. It is, in fact, the current state of decentralized currencies like Solana, which should theoretically be immune to geopolitical tremors. 

Solana is one of those cryptocurrency projects that emerged to claim a portion of Ethereum’s market. The coin has been successful in its endeavor and also showed huge potential to transform into the existing payment ecosystem. Solana also aims to integrate new markets like NFTs and the metaverse into the current payment system. According to this unbiased and comprehensive Solana forecast, the price of SOL might skyrocket in the future, making it an extremely rewarding investment. Even if Solana doesn’t shoot for the moon, there’s still a possibility it can turn into a profitable investment if it doesn’t crash.

Things, nevertheless, took an unexpected turn when Putin decided to tease the world about another World War. Wars and the economy never go hand in hand, and even prominent currencies losing grounds wasn’t an entirely unprecedented outcome. What investors did not expect was Solana reacting to a political event with which it was supposed to have no links whatsoever. Surprisingly, SOL’s price plummeted to the $90 range on the 14th of February following the brewing conflict between Russia and Ukraine.

Although Solana received a big blow, it is not the only cryptocurrency to be hit by the bearish market. The entire market has been shaken by Putin, and the currencies lost ground at varying degrees. It leads financial and investment experts to conclude that cryptocurrencies are still subject to the changing emotions of those in power. This new perspective has raised fundamental questions regarding cryptocurrencies being isolated from the realities of the world.