Solana, the digital token backed by fallen crypto mogul Sam Bankman-Fried, is starting the year strong after a 94% plunge in 2022. Traders are looking for evidence that the selloff is overdone after a supportive Dec. 29 tweet from Ethereum co-founder Vitalik Buterin. Don’t look for Solana to regain its highs anytime soon though: The coin remains 95% below its November 2021 peak.
With a gain of more than 22% over 24 hours and nearly 30% over a week, Solana (SOL) is by far the best performing cryptocurrency in the top 20 on Wednesday morning, while Bitcoin has been flat since yesterday and has gained just over 1% over the past 7 days.
Solana thus marked at 4am CET on Wednesday a high of $14, the highest since December 16. It is worth noting that between the December 29 low of $8.09 and this morning's high, Solana has posted a gain of more than 73%.
Solana (SOL) recovers from FTX bankruptcy shock
Recall that SOL had previously suffered more than other crypto currencies from the FTX bankruptcy scandal, due to Solana's close ties to Sam Bankman-Fried. The crypto had indeed plunged 71.7% between a peak of $38.75 on November 5, and a low of $10.96 on November 22.
In a note published earlier this week, analysts at Bernstein pointed out that "Solana suffered from FTX being its biggest champion and largest concentrated investor," explaining that "multiple DeFi applications within Solana had early FTX involvement, which led to the evaporation of its DeFi ecosystem when FTX disappeared, and judging that "Solana needs to rebuild" and "must now play the more organic game of bringing in motivated developers."
Auteur : Brian Leclere
