Solana has improved over the past week as the network keeps getting more users. The cryptocurrency’s rise happened at the same time when people were excited about the new memecoin, Bonk Inu (BONK). The asset is moving along well, ignoring recent losses caused by the fall of the FTX.
Solana is doing his best to get through hard times. It’s hard for the competitor to Ethereum, especially the Defi ecosystem, just like it’s hard for the whole industry in this cold crypto winter.
Solana Restored December Loss and they have pushed the price of one coin up to $13.50, a rise of more than 40% in a week. It was sold for less than 10 dollars by the end of December. So this is a rebound for Solana on the 5-day view after a long, slow drop on the 30-day, 6-month, and 1-year charts.
1. How Solana is dealing with its FTX links
Since its release, Bonk Inu (BONK) has taken the Solana blockchain by storm. In the one-page summary of the project, the founders say that they don’t want “Alameda-style” tokenomics. Instead, they want a fun coin that gives everyone in the community a fair chance. That’s great news after all the outcomes from the Alameda-FTX scandal.
Vitalik Buterin, the co-founder of Ethereum, a cryptocurrency competitor, gave the platform a positive review. During the week of the New Year’s holiday, he posted on Twitter that “smart people” he trusts had told him about the “early innovative developer community in Solana.
He just said that the chain has “a promising future” and seemed sure that “the horrible, greedy money people have been washed out.” He even said that he hoped Solana would “get a fair chance to do well.”
That’s a better week for Solana than for partners Gemini and Genesis, who both lend crypto. They got into a public fight about how the solvency crisis that brought down the FTX exchange hurt their customers.
2. Solana Defi Marketplace Keeps Growing
So it looks like Solana is doing very well despite the damage from FTX. Especially if you look at how much its price dropped in the last six months and in December.
A crypto column on the Motley Fool says that FTX can’t go much lower: “The market had priced in all the possible bad news scenarios and pushed Solana to a bargain-basement level.”
Even though crypto prices were very low in 2022, on-chain data shows that the number of new Solana addresses kept growing each month.
In the fourth quarter of 2022, the number of new monthly addresses and active monthly addresses grew less quickly. However, the network still added new addresses and active monthly users.
3. New meme coin goes viral over the New Year’s break
People who like it call it the Dogecoin (DOGE) of Solana. Dogecoin is a proof-of-work accounting blockchain fork of Bitcoin, to be fair (BTC). It’s not an ERC-20 or BEP-20 token that lives in Ethereum or Binance. Instead, it’s a Layer 1 Proof of Work coin and a meme token.
(Dogecoin recently set up a new Core Development Fund with $5 million in DOGE. Here’s where you can learn more about it.)
But Bonk Inu is definitely in the running for Solana platform DOGE.
During the holiday week, a lot of tokens have been burned, which sent the price of Bonk Inu through the roof. It’s a page out of Binance’s book on how to use marketing incentives (BNB).
The team has gone on a public campaign to burn a lot of tokens, which locks them up cryptographically for good. That makes the rest of the coins in the token supply worth something. So traders are getting very excited about this. For example, on December 4, the Bonk team burned 500 billion BONK tokens.
Liquidity providers are also making a lot of money off of BONK tokens right now because the number of trades is going up and there is a lot of demand. In about a week, its fair market price went up by about 3,000%.