Not long ago, Live Bitcoin News published an article talking about how poorly the Solana cryptocurrency was doing. The asset was crashing and burning likely due to its ties to the now fallen crypto exchange FTX and its disgraced head executive Sam Bankman-Fried, and while things aren’t fully looking up for the currency just yet, […]
Not long ago, Live Bitcoin News published an article talking about how poorly the Solana cryptocurrency was doing. The asset was crashing and burning likely due to its ties to the now fallen crypto exchange FTX and its disgraced head executive Sam Bankman-Fried, and while things aren’t fully looking up for the currency just yet, it’s garnering a heavy load of support from crypto developers such as Vitalik Buterin, the co-creator of popular crypto network Ethereum.
Solana Has Recorded a Price Jump
In the previous article, it was discussed that Solana has deep ties to the fallen exchange and has since crashed by more than 96 percent since reaching an all-time high during the month of November 2021. During that time, it was trading for just shy of $260 per unit. At the time of the FTX bankruptcy, the currency had fallen to less than ten dollars.
Solana’s ties to FTX are so thick that it’s often dubbed “Sam Coin” in honor of Sam Bankman-Fried (not such a big honor anymore). The asset has links to an on-chain crypto exchange known as Serum, which was also created by Bankman-Fried. Solana is issued by the Solana blockchain, which presently engages in decentralized finance (defi) protocols and offers monetary products such as loans and mortgages.
Things do appear to be changing for the currency, however. At least on a temporary basis. At the time of writing, the altcoin has recorded a surge of approximately ten percent thanks to some positive words delivered on its behalf by Vitalik Buterin. In a recent tweet, the Ethereum front man said:
Some smart people tell me there is an earnest smart developer community in Solana, and now that the awful opportunistic money people have been washed out, the chain has a bright future. Hard for me to tell from [the] outside, but I hope the community gets its fair chance to thrive.
During its peak, Solana had a market capitalization of about $80 billion, and while this is not comparable to bitcoin or even Ethereum, the number is considered relatively impressive for a secondary altcoin.
Sadly, given the bear market conditions the crypto world is facing and the sudden problems surrounding FTX, that market cap has since fallen to about $4 billion. This is a dip of more than 90 percent at press time. Overall, the crypto space has lost more than $2 trillion in valuation in the last several months.
Solana has also gotten support from the likes of tech and crypto moguls Chamath Palihapitiya and David Sacks. On a recent podcast episode, Palihapitiya said of Solana:
I was able to see a little bit under the hood of Solana Pay, and that’s really exciting. [Solana and blockchain] is like a swarm of activity to dismantle these payments businesses.