Solana Rebounds Following Devastating 2022
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Layer-1 protocol Solana (SOL), which temporarily got the moniker “Ethereum killer” from some in the crypto industry, was one of the rising stars during the 2021 crypto bull market.
Unfortunately, the smart contract platform suffered greatly from the 2022 market slump, which was made worse by the project’s tight ties to FTX and Sam Bankman-Fried, who served as Solana’s principal financial sponsors.
The price of SOL has plunged 96.44% from its all-time high of $260 in November 2021 to a low of $7.95 on December 29, 2022, which has devastated token holders. This decline is the result of the start of “crypto winter” and the failure of FTX.
But now that the worst of the FTX debacle is over and none other than Ethereum co-creator Vitalik Buterin has spoken out in support of the project, things seem to be turning around for the troubled venture.
The price of SOL fell after Vitalik’s tweet, but it has since risen 78.42% to a daily high of $14.22 in early trading on Wednesday. This is accompanied by a 47.25 percent increase in its 24-hour trading volume to $1.27 billion.
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 outside, but I hope the community gets its fair chance to thrive🦾🦾
— vitalik.eth (@VitalikButerin) December 29, 2022
The rise in utilization of the network, notably in the space of non-fungible tokens, has triggered the positive trend in SOL and is not only a result of Vitalik’s praise. NFT trading volumes on the Solana blockchain are still strong despite the substantial value decline that occurred in 2022, with the protocol experiencing a spike in activity on Christmas Day.
Solana Emerges Top Performer Above Other Blockchains
According to data from CryptoSlam, Solana outperformed other well-known protocols like Polygon and ImmutableX during the past 30 days by processing over 775,000 transactions and seeing more than $77 million in NFT sales. Only Ethereum (ETH) processed more NFT sales and transactions, demonstrating Solana’s continued strength as a competitor.
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