After experiencing a 15 per cent price fall, Solana’s SOL token erased most of it following the support it received on Twitter from Vitalik Buterin.
The Ethereum founder showed his support on Twitter, stating that the blockchain has a bright future ahead. He also stated that several smart people informed him that Solana has a smart community of developers that is true to itself, which also contributed to his announcement.
While Solana’s native token is not performing so well right now, Buterin expressed his hopes that the community will benefit from a fair chance to develop, although he is not directly implicated. The developers behind Solana are currently developing a DeFI (decentralized finance) ecosystem that is meant to be a rival for Ethereum, the current market leader in DeFi.
There are some crypto fans on Twitter that compare Solana’s token 2021-2022 activity to the pattern experience by Ethereum’s ETH in 2018-2019, also called boom-bust. Then, ETH experienced a 95% drop but eventually recovered and is presently experiencing similar heights.
Industry experts argue that, in order for SOL to bounce back, Solana must break associations made with FTX’s Bankman-Fried, a former investor and supporter of Solana projects, including SOL. FTX and Alameda Research performed venture and market-making deals for the blockchain and its products. Following the implosion of FTX, Solana DeFi began to experience a decrease in capital, and its liquidity continued to suffer.
