Vitalik Buterin Helped Solana Out Of 22 Month Low With A Tweet

Key Points:

Solana is still suffering heavily since the collapse of FTX.
A tweet from Vitalik Buterin, the co-founder of Ethereum, a rival to Sol, saved it a massive loss when its price hit a 22-month low.
Some believe that Solana will continue to explode in the coming year. Its current chart is quite similar to the Ether chart of 2018-2019.

Solana, the network that was most devastated after the collapse of Sam Bankman-Fried’s FTX empire, is still facing difficulties as SOL, its native token, is in serious decline and could become among the most devalued tokens of 2022 after LUNA and FTT. However, one hope glimmered thanks to the co-founder of Ethereum, Vitalik Buterin, with a tweet he posted.

Ironically, Ether is Solana’s most serious opponent, even though Solana was previously dubbed the “Ethereum killer,” but now it seems a bit vain.

After the Ethereum founder tweeted support for the blockchain most severely damaged by FTX’s collapse, SOL mostly reversed from the 15% decline.

SOL recovered from its $8.02 low on Thursday to retake the $9.63 trading range, where it had been trading for the majority of the day. This bottom is also the lowest in the past 22 months since March 2021.

SOL daily chart. Source: Coincu

However, despite earlier being openly supported by suspected fraudster Sam Bankman-Fried, the token is currently over 95% below all-time highs of $259 due to sellers dumping the asset.

Some Twitter users noted that SOL’s recent chart closely resembles the boom–bust pattern that ETH set in 2018 and 2019, when ETH plunged 95% from its high of around $1,200. ETH has returned to the $1,200 area after enduring another boom-bust cycle.

SOL has strong links with FTX and Alameda Research, as these two companies supported many Solana-related projects during their time in existence. Now, Solana will have to shoulder the burden on its own as its projects lose funding and liquidity worries persist.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.