The year-ending tweet from Ethereum co-founder Vitalik Buterin helped Solana price jump. From December 31st, 2022, Solana experienced a bullish market trend for almost three consecutive days. Some market analysts believe that Solana might show an increase in growth rate in 2023.
On December 30, 2022, Vitalik Buterin tweeted, “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.”
Two years back, in November 2021, Solana was traded at $267.50 and was touted as the crypto market’s next top coin. But 2022 proved to be rather unlucky for Solana; the coin price experienced a 97% fall due to persistent bearish markets in the past few months after the sudden collapse of FTX, Terra, and Celsius Network. As the year ended, Solana was one of the worst performers in the crypto market.
According to CoinMarketCap, Solana is currently trading at $11.87, up by 7.61% in the past 24 hours. The major cryptocurrencies, Bitcoin and Ethereum, are also experiencing relatively mild growth rates.
Earlier, Robert Kiyosaki, the popular author of “Rich Dad Poor Dad,” said it would be a better option for investors to invest in Gold, Silver, and cryptocurrencies like Bitcoin, Ethereum, and Solana.
How FTX’s downfall affected Solana price
Earlier, Solana reacted sharply to FTX’s downfall. It released a letter detailing the risks posed by the bankrupt crypto exchange FTX. Solana owned $180 million worth of digital assets before the exchange restricted the possibility of withdrawal on November 6, 2022.
Solana lost half of its market value before the FTX bankruptcy. Representatives of Solana stated that nearly $1 million (USD) is stuck on the crypto exchange. According to experts, this volume was insignificant and amounted to less than 1% of cash reserves.
Solana foundation stated, “This is less than 1% of Solana Foundation’s cash or cash equivalents and as such, the impact on Solana Foundation operations is negligible.”
In November 2022, Solana price dropped to $15 from $259 last year. At the time of FTX’s downfall, Solana held nearly $3.2 million (USD) shares of FTX. During spring, FTX held nearly $60 billion in collateral and $2 billion in liabilities. During the FTX collapse, the collateral dropped to $25 billion and liabilities to $8 billion.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/01/03/solana-experiences-growth-for-three-days-straight/