Solana (SOL), a cryptocurrency that was thought to be on the brink of failure after the bankruptcy of Sam Bankman-Fried’s empire, has made a strong comeback in recent weeks. Experts and industry sources had predicted that Solana would not survive the fall of FTX, a cryptocurrency exchange, and Alameda Research, a hedge fund and trading platform for institutional investors. Both companies were key players in Bankman-Fried’s crypto empire.
However, Solana has managed to bounce back despite its close ties to Bankman-Fried and the project Serum, a liquidity hub that was created by him and is one of the foundations of Solana’s DeFi infrastructure. The token saw a 73% drop in value between November 6 and December 31, ending the year at $9.96, but has since seen a 79% increase over the last seven days, according to CoinGecko. This has propelled it back into the top 10 cryptocurrencies by market value.
The resurgence of Solana has been attributed to a statement of support from Vitalik Buterin, a co-founder of Ethereum and influential voice in the crypto space. Buterin stated that there is a “smart developer community” in Solana and that the “chain has a bright future.”
Solana’s recovery serves as a reminder of the volatility and unpredictability of the cryptocurrency market, as well as the potential for a resurgence even in the face of adversity. Investors should be aware of the risks and potential rewards when considering investing in Solana or any other cryptocurrency.