Solana’s ascent as MakerDAO’s NewChain foundation ignites debate while network stability gains the spotlight. SOL may rally, but can it break free from bearish trends?
Solana was chosen by MakerDAO as the preferred blockchain for their upcoming phase, causing a dispute to erupt between the Solana and Ethereum communities. It wasn’t surprising then that the Co-founder of Solana had to come out and share his perspective on the matter.
Solana considered for MakerDAO’s NewChain
Over the past week, tensions flared up between the Solana and Ethereum communities due to a recent development. Rune Christensen, Co-founder of MakerDAO, revealed that the Endgame phase is reaching its final stages. He also disclosed that the last part of Endgame would involve launching a native blockchain for Maker, codenamed NewChain.
However, tensions emerged when it was proposed that Solana should serve as the foundation for NewChain. Christensen argued that this choice is based on its strong technical merits and resilience following the FTX incident. He also pointed to successful projects that had forked its codebase. This proposal implied that Maker, which has been on Ethereum since its inception, could potentially migrate to Solana.
In response to this Maker developer’s passionate reactions, Anatoly Yakovenko shared a message urging the community not to attack Ethereum.
How the Solana network has held up
While MakerDAO’s proposal could significantly benefit the Solana network, it has also sparked concerns about its stability. Nevertheless, the network’s recent performance has remained stable for over six months.
At the time of writing, the network’s uptime was 100%, as per Solana status. If the network can consistently maintain this level of uptime, it may finally address the persistent criticism of frequent downtime, one that has been a weakness of the network in the past.
How SOL reacted to the latest development
The most recent development triggered a positive trend for Solana when analyzing the daily timeframe chart. However, this positive trend highlighted a modest increase of just less than 1%.
At press time, the situation had improved, with SOL trading at approximately $19.7 on the charts, representing an appreciation of >1%. This marked the third consecutive day SOL has been trading in the positive zone.
Nevertheless, despite this recent rally, it was insufficient to pull SOL out of its long-term bearish trend. The Relative Strength Index (RSI) hovering below the 40-mark on the charts simply highlighted the same.
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