As 2023 lies around the corner, Solana seems to be experiencing a tough time in the market and is probably experiencing an existential crisis. However, despite the crisis, Ethereum’s founder still believes SOL still has it and is deemed to recover come the next financial year.
The price of SOL has plunged below $10 for the first time in two years as a result of the collapse of the cryptocurrency exchange FTX. SOL also dropped off the top 20 cryptocurrencies by market cap. However, since Vitalik expressed his bullish stand for the token, the asset price has slightly recovered. The support for Solana from Vitalik Buterin comes when the ecosystem is experiencing intense negativity due to its exposure to FTX.
Some wise people have told me that Solana has a community of sincere clever developers and that the chain has a promising future now that the horrible opportunistic money people have been flushed out. It’s difficult to say from the outside, but I hope the neighborhood can prosper.
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.
Hard for me to tell from outside, but I hope the community gets its fair chance to thrive🦾🦾
— vitalik.eth (@VitalikButerin) December 29, 2022
Solana troubles over yet?
Matrix port, a cryptocurrency asset management funded by Bitmain, said it would remove Solana and Solana-U from its platform. In addition, several Solana-based projects have also declared their demise due to the Solana blockchain’s many outages over the previous year.
DeGods and y00ts, two well-known NFT projects, have announced migrating to Polygon and Ethereum, respectively. This demonstrates how market participants’ trust in the Solana ecosystem is deteriorating.
Anatoly Yakovenko, a co-founder of Solana Labs, stated in an interview from earlier this month that he would not be concentrating on the price movement but rather on the technology and letting people develop something fantastic that’s decentralized.
He continued that only 4% of the Solana-based projects are exposed to FTX. Unbelievably, 80% of the projects on Solana are unaffected by the defunct cryptocurrency exchange. In addition to SOL, numerous Solana-based coins have also had issues, including Solid (SLND) and Serum (SRM).
Will SOL recover
After Vitalik Buterin’s tweet, who also recently expressed concern on Twitter’s CEO drama, Solana’s native token SOL partially reversed Thursday’s 15% decline. However, Bankman-Fried, who made significant investments in SOL and backed Solana initiatives with FTX venture transactions and market-making from Alameda Research, will probably need to be dissociated from SOL for it to recover. Solana DeFi saw a capital outflow as a result of the implosions of the twin firms, and a lack of liquidity still plagues its trading procedures. 2023 remains in the eyes of many as people speculate on what Solana’s performance will be over that year.