Ethereum creator Vitalik Buterin praised a cryptocurrency. The coin he praised was a controversial coin that was recently associated with the FTX and Alameda collapse. Here are the details…
Vitalik Buterin shares his best wishes for Solana
cryptocoin.com As we have also reported, Solana, which was once in the top 10 with its market value, became one of the biggest coins hit by the FTX crisis. Since early November, when FTX crashed, some analysts have predicted a larger drop in Solana. Some argue that Solana will recover and come out of this situation stronger. Meanwhile, a Solana comment came from Ethereum founder Vitalik Buterin. Vitalik Buterin praised Solana (SOL) in a statement. Moreover, he apparently single-handedly helped Solana recover by praising him on Twitter. Buterin wrote in a tweet:
Some smart people tell me that Solana has a serious community of smart developers, and now that the “opportunistic” people’s money is out of the net, the chain has a bright future. It’s hard for me to say anything from the outside but I hope the community gets a fair chance to thrive.
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’s (SOL) price remained close to $9.44 for most of yesterday. It then fell 13.2 percent to $8.19 in a few hours. The price rose 24.8% to $10.22 after Buterin’s tweet. However, at the time of writing, it fell 3.2 percent to $9.38. Mike Dudas, co-founder and former CEO of The Block and founder of 6th Man Ventures, observed that the price chart of the asset resembles the letter “V” in Buterin’s first name. “This pattern is often called The Vitalik,” he mocked.
The panic around Solana has not subsided yet
The value of Solana’s SOL token has dropped significantly over the past few weeks due to Solana’s relationship with FTX. In November, the asset fell 55 percent, making it one of the worst-performing tokens of the month. The road to SOL’s final collapse seems to have started around December 28. On that day, rumors surfaced that former FTX CEO Sam-Bankman Fried would sell a large amount of SOL tokens. It is unclear whether such a sale ever took place.
Solana initially entered the market to compete with Ethereum. It has even been described as the “Ethereum killer”. Despite Solana’s competitive nature, it shares similar goals with Ethereum, which may explain Buterin’s endorsement of the project today. Both Blockchains support programmable smart contracts. Thus, it allows developers to create custom tokens, DeFi applications and NFTs.
Solana’s original strategy included targeting a high turnover. Solana supports over 50,000 transactions per second, while Ethereum supports 17 transactions per second. Solana’s native token SOL is currently the 19th largest cryptocurrency by market cap. The asset has more than $3.4 billion in capital.
