The crypto world is abuzz with the recent surge in Solana’s price, but what is behind this pump? Some say it’s due to a tweet from Ethereum co-founder Vitalik Buterin, while others argue it’s a result of a rediscovered focus on the project’s fundamentals. Is Solana’s sudden spike a flash in the pan or a sign of a sustained trend?
Tweet or Solana’s fundamental discovories
Since the Ethereum creator Vitalik Buterin tweeted support for the blockchain most severely damaged by FTX’s collapse, Solana’s native token SOL has recovered most of its 15% decline from December.
SOL has recovered from its $8.19 day low and is now trading in the area of $16.17, where it has been for most of the day. The fact that vendors are unloading the “Sam coin” that alleged fraudster Sam Bankman-Fried previously loudly promoted is one reason why the token is still below record highs of around $260.
Major active wallets on Solana protocols stayed constant post-FTX Implosion
Data indicated that, following the FTX crash, the daily active wallets communicating on the main Solana protocols remained stable. Transaction volumes and active accounts, which remained stable throughout the collapse, paralleled this pattern.
Due to Solana’s connection to the defunct exchange FTX, the SOL token’s value dropped precipitously over the last few months. The commodity had one of the worst performances in November, falling by 55%.
The period preceding SOL’s most recent meltdown started on December 28. On that day, reports began to circulate that Sam-Bankman Fried, the former CEO of FTX, would sell a significant amount of SOL coins. It’s unclear if such a sell-off occurred.
Solana, dubbed the ‘Ethereum killer,’ was created to rival Ethereum. Even though Solana is competitive, Buterin endorsed the project, which may be because Solana and Ethereum have similar objectives.
Other speculations: The rise of Solana Meme-coin Bonk (BONK) is the cause of SOL’s growth
Some claim that Solana has had such a wonderful few days in 2023 because of its new memecoin, Bonk (BONK), introduced on the chain last week. BONK’s popularity skyrocketed after the corporation distributed over half its 56 trillion token supply to its customers via airdrop. Airdropped to Solana NFT collecting were an additional 20% of the entire amount of BONK coins. Data show that BONK initially became eligible for trade on December 29th, the same day Solana hit a low of $8. Soon after its debut, the memecoin hit a low of $0.000000125 before reaching its all-time high earlier today at $0.000001626437. This leads to a staggering price increase of over 3800%.