3 reasons why Solana was able to catch up with his December losses at a New Year's rally
3 reasons why Solana was able to catch up with his December losses at a New Year's rally
Solana has recovered this week because the network continues to win more users. The excitement about the new Memecoin Bonk Inu (bonk) fell together with the rally of the cryptocurrency. The asset moves quickly and wipes the recent losses in connection with the collapse of the FTX.
Solana goes through hard times. It is hard for the Ethereum competitor, in particular the defi ecosystem, since it is hard out there for the entire industry in this biting crypto winter.
The profits for Solana have pushed the coin up to $ 13.50, which means a weekly increase of 40+%. It was traded under double digits by the end of December. So this is a rally for Solana in the 5-day area after a long, lengthy fall over the 30-day, 6-month and 1-year view.
1. How Solana weathered his FTX connections
bonk Inu (bonk) has conquered the Solana blockchain since its introduction in the storm. In the one-sided description of the project, the founders say that they are fun in the "Alameda style" in favor of A Coin and gives everyone a fair opportunity in the community. These are good news after all the episodes of the Alameda-fx scandal.
The platform also has a really from a crypto competitor, Ethereum co-founder Vitalik Buterin. He tweeted over the New Year's holiday week that "clever people", whom he trusts, told him about the "serious intelligent development community in Solana".
He said the chain had "a brilliant future" and seemed to be assured that "the terrible opportunistic money people were washed out". He even added that he hoped that Solana will "get a fair chance of thriving".
This is a better week change for Solana than for the crypto loan partner Gemini and Genesis. They raged in a public spit over the damage for their customers in the solvency crisis that brought the FTX exchange to a standstill.
2. The Solana Defi platform continues to grow
SoSolana seems to survive the damage from FTX very well. That means when you consider how much the price has fallen in the past six months and in December.
A crypto column on Motley Fool indicates that there is not really a deeper to exceed the FTX: "The market had apparently priced in all potential scenarios with bad news and Solana drove down to a bargain level."
on-chain data show that the growth of the new monthly addresses for Solana, despite the freezing of crypto prices in the course of 2022.
The growth of new monthly addresses and active monthly addresses slowed down in the fourth quarter of 2022, but the network continues to generate new addresses and active monthly users.
3. New Meme Coin explodes about New Year
enthusiasts celebrate it as a Dogecoin (Doge) from Solana. To be fair to be fair, it is a proof-of-work accounting blockchain fork from Bitcoin (BTC). It is not an ERC 20 or Bep-20 token that lives in Ethereum or Binance, but a layer 1 pow coin and a meme token.
(Dogecoin recently introduced a new 5 million Doge Core Development Fund. You can read more about it here.)
But Bonk Inu is certainly running for the title of the Solana platform Doge.
What drove the price of bonk inu during the holiday week was a flood of token Burnings. It is a page from the marketing incentive playbook from Binance (BNB).
The team started a public campaign in which a large number of tokens were burned and blocked forever. This means that the remaining coins in the token supply are given a value. So that caused a lot of excitement among the dealers. Just as the bonk team burned 500 billion bonk tokens on December 4th.
Due to the increasing volume and the enormous demand for trades, liquidity providers are currently also achieving enormous returns for bonk tokens. The fair market price increased by around 3,000 %in about a week.
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