1) DeFi is struggling
The TVL in $ is going up in the recent months but that's only because the SOL price is pumping but in reality if you switch the currency from $ to SOL on DeFillama you see a clear trend, the TVL in SOL is waaaaay down from its ATH https://defillama.com/chain/Solana?currency=SOL (toggle between $ and SOL) and hasn't recovered from the FTX and SBF saga.
2) The 3 biggest cheerleaders ft. VCs who pumped SOL are gone or unable to help due to their own issues
FTX + SBF gone. They pumped so much money into it and invested in the “ecosystem” during the last bull run but all that is gone now. No more capital, influence and support. Jump crypto (Chicago firm's crypto arm) can't/won't pump more money into it like last time. The same goes for MultiCoin Capital…
3) Bankruptcy estate selling/dumping
71M SOL or 17% of circulating supply and that's a ton of SOL to dump any way you slice and spin it…
4) Unsustainable economics
Solana barley generates any network revenue (5 figures $ a day) which is pitiful for a network worth billions of $ and it's less than the cost of maintaining the network -> token inflation that's used to pay the network validators. Unless that changes they have to rely on the speculators to drive the price up and keep them from entering the death spiral. The fees can't be increased though because that will ruin their value proposition…
5) Probably the most important con: its complex and experimental design
Its architecture has led to undesirable outcomes that have affected Solana's technical stability.
Between January 2022 and February 2023, Solana had occasions in 7 out of those 13 months with outages. The most recent of these outages, on February 25, 2023, lasted nearly 19 hours. The core issue of this outage and others in the past stems from the fact that Solana is running an experimental system.
There is no formal verification of the Solana consensus mechanism, nor is there the ability to predict future failures in Solana's design because of the colossal data volumes that the system processes. Though Solana has implemented numerous improvements to mitigate past issues, Solana's design may make it impossible to understand future complications until they happen. As a result, the Solana team still considers the chain to be in “Beta” because future network failures could result from unforeseen causes and because of the complexity of Solana and the amount of data it processes, resolving these issues might take substantial periods of time to fix.
Clearly, this dynamic is unacceptable to serious financial and non-financial businesses that may want to deploy to Solana. The unpredictability of uptime is partly responsible for Solana's low TVL (total valued locked) in decentralized finance relative to its peers. While the Solana team has implemented what they believe are important fixes, network fragility will remain an issue for the foreseeable future, and the roll-out of the new design Firedancer may even increase the potential for irreconcilable problems.
EDIT: the SOL moonbois are furious about this post and are downvoting heavily because they can't stand any links or sources that spit facts which might hurt their bag. Thank you to those who are upvoting and actually taking their time to read the post and click on the sources for more nuances.