The token which had undergone losses has witnessed a short rally after Vitalik Buterin’s tweet.
Solana’s native token SOL rallied after its 15% loss as Ethereum founder Vitalik Buterin tweeted in its support. Solana was hugely affected by a prominent exchange’s bankruptcy. SOL rebounded from its low of $8.19 to the $9.50 range, where it continued trading. Since investors dumped the token, it was still 96% below its all-time highs. Buterin tweeted, “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.”
Since February 2021, the token has been trading in the single digits for the first time, falling by 20% in just one week. This sharp decline is worrying investors and causing many to question the company’s future. Buterin reflected, “Hard for me to tell from outside, but I hope the community gets its fair chance to thrive.” This is a direct response to the growing demand for DeFi solutions that offer superior performance and scalability.
The crypto community on Twitter indicated that SOL is following in ETH’s footsteps – after reaching highs above $1,200, the value of ETH fell by 95%. Solana’s present state is attributed to the recently bankrupted exchange’s association with SOL. Could SOL be headed for a similar fate? Only time will tell, but it’s certainly something to keep an eye on.