In 2021, $SOL was trading around 233 dollars. The market capitalization was about 71 billion. The excitement was everywhere. New users were arriving every day. Many people thought it was already expensive.
Now look at today. The market capitalization is again about 71 billion. But the price is close to 126 dollars. Same value. Very different price. This confuses a lot of people and that's where mistakes happen.
The reason is simple. The supply has changed. More SOL tokens exist now compared to 2021. The market capitalization has remained similar but the price has adjusted because the total number of coins has increased. $SOL The price alone does not show the true value. The market capitalization does.
Here is the important part. In 2021, Solana was primarily driven by excitement. The network was new. Applications were rare. NFTs were in their infancy. Now, Solana has real usage. Real volume. Real developers. Real users. Memecoins. DeFi. Payments. Everything is more active than before.
Same market capitalization. Stronger ecosystem. Lower price per coin.
Smart money looks at this and stays calm. Emotional money only looks at the price and panics.
Sometimes, the chart is not bearish. Sometimes, it is just misunderstood.
Read this again slowly.