On Tuesday, the 17th, the cryptocurrency market begins with a general sense of hope and optimism, especially for the Solana Network cryptocurrency SOL. Hoping to have left behind the “crypto winter” and the relationship with bankrupt FTX, the cryptocurrency is racking up a 214% gain in less than 20 days.
At $23.40 at press time, SOL is up 44.14% in the past seven days, according to data from CoinMarketCap.
Since its last low of $7.96 on November 29, SOL is up about 214% to $25.01, although its price has pulled back slightly to $23.40.
Announced almost as “dead” in November 2022, SOL offers a very profitable start to the year for investors, accumulating an increase of 137.5% in just the first 17 days of 2023.
Solana (the sun)
Created by Anatoly Yakovenko, Solana promises speed, scalability, and lower fees. In this way, the attraction of a series of projects, especially NFTs, has come to be considered one of the main competitors of Ethereum, currently the second largest blockchain in the world.
However, technical failures throughout the year and the support of former FTX CEO Sam Bankman-Fried made SOL one of the biggest victims of the crypto winter.
Share with FTX
In addition to the significant decline over the past year, Solana’s close relationship with FTX was the main reason why the current 11 largest cryptocurrencies in the world received such pessimistic predictions.
Last November, FTX, the second largest crypto exchange in the world, went bankrupt in less than a week.
Engaged in controversies over the use of leveraged client assets and risky operations involving poker strategies, cases of ostentatiousness and polygamy among executives, the group of companies has been a champion of one of the biggest downfalls in the sector, already rocked by external and internal events.
Now, Solana wants to prove that it’s not just about her past relationship with the bankrupt brokerage firm. According to Austin Federa, Head of Strategy and Communications at the Solana Foundation, blockchain has taken back control of all FTX-related projects.
Additionally, he noted to Bloomberg in an interview that the passive event helped Solana’s community grow in the number of active addresses and validators.
“The interesting part is that technology wasn’t part of what happened. What we saw is that the community and developers around the world really got together and replaced the parts of the ecosystem that FTX was involved in and then expanded from there,” said Austin Federa.
– (mint/disclosure)
New developments
Solana can say goodbye to outages that negatively affected network operation throughout 2022. According to Federa, network developers will improve all processes starting with creating a new verification client.
“One of the biggest of these investments is the second verification client which is really a second copy of the system that runs the network. This means that if one system goes down, there is another system that can step in.”
The new client will help eliminate outages and instability that occurred more than seven times in early 2022 alone, and should help improve performance and deliver improvements that will allow people to build products and services efficiently.
Is it time to buy SOL?
Technological developments, in addition to ensuring network security and ease of use, may play an important role in future increases in SOL’s share price. Despite the recent highs, the cryptocurrency is still running at a 91% drop since its all-time high, when SOL hit $260 in November 2021.
According to specialists, the views can be optimistic if the project is successful in new developments, making the low moment a buying opportunity.
“Contrary to what a good part of the market believes, Solana has not died along with FTX. Quite the contrary, the protocol now has a healthy path of development, especially now that the fear of the ‘end of Solana’ has been left aside,” commented Lucas Joza, Asset Analyst. Digital at BTG Pactual.
“Overall, the protocol has become very undervalued and oversold compared to other competitors, so bull moves like this make more sense. However, in order to survive, Solana now has to prove its worth against a new competition, which is the Ethereum Accumulator,” the expert added.
Solutions that can help Ethereum improve its scalability and privacy and reduce transaction fees Rollups are considered the most promising innovation today when it comes to blockchain technology and cryptocurrency.
They were also praised by Vitalik Buterin, the creator of Ethereum, which is currently the second largest blockchain in the world.
However, Vitalik himself holds optimistic views on Solana’s development. One of the leading names in the cryptocurrency space recently said that he hopes Solana will get a fair chance to thrive.
Vitalik Buterin tweeted: “Some smart people told me there is a serious community of smart developers at Solana, and now that the horrible ‘opportunistic money’ has been wiped out, the network has a bright future.”
Despite stiff competition, SOL remains one of the largest companies in the world, rising from 13th place in early January to 11th by market capitalization.
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