Between a major data breach and a strong association with FTX, Solana's reputation has fallen in the crypto world. However, with Sam Bankman-Fried's trial coming to a close and a popular new memecoin, Solana seems to be finally finding its feet again. Will "The Ethereum Killer" have a resurgence in 2024? Only time will tell, but things are looking up for Solana.
2022 was riddled with problems for the Solana blockchain and, consequently, the SOL price. In August, a cyber attack caused over $8 million in SOL to be drained from an estimated 8,000 wallets. The cause of the hack was never revealed, but it appeared that those who were affected interacted with apps on iOS and Android networks. The breach did not inspire confidence in SOL holders. In November of 2022, Sam Bankman-Fried, former CEO of FTX, was arrested on charges relating to his personal use of FTX funds. The scandal has resulted in $10 billion in customer claims against the company, and the current standing of SOL price indicates that customers will most likely lose an estimated $2 billion. However, Bankman-Fried's trial coming to a close has had a surprising effect on SOL price.
As jurors begin to deliberate on Bankman-Fried's fate, traders have rallied around FTX holdings, including Solana, in the hopes of raising more money for creditors. If the price of SOL continues to rise, creditors could get back 100 per cent of their wrongly spent money. While a whopping 55.8 million SOL tokens remain locked up from the market because they belong to FTX, the rise in SOL price will still aid creditors. The FTX tokens will begin to be released next year, but the majority will stay locked until 2027 or 2028.
Another major win for Solana has been the rise in popularity of BONK, a dob-based memecoin on the Solana blockchain. The sudden price rally for BONK caused Solana's price to rise nearly 250 per cent, putting it at $68.97. The clamber for BONK tokens also caused a rise in sales of Solana's crypto-based phone, the Saga. Purchasing the $599 phone grants the buyer an airdrop of 30 million BONK tokens. Saga sales jumped ten times last week as BONK's popularity flared, putting it on track to sell out completely before the end of 2023.
Coinbase confirmed that BONK would be listed on its exchange last week, but after seeing the huge effect the announcement had on BONK's price, they decided to list it that same day. The memecoin was to be an experimental listing, as Coinbase would allow it to be traded like any other cryptocurrency. BONK outperformed expectations, setting a new record-high price. Over the past month, the BONK price rose by 613 per cent. This exciting gain resulted in SOL flipping Ethereum in total decentralized exchange volume for the first time in history.
Solana has experienced many bumps in the road, but 2024 looks bright for the blockchain. With the success of BONK and real-world events turning in Solana's favor, the price should continue to rise. SOL's year-to-date growth in 2023 is 657 per cent — while 2024 likely will not see as large of a shift, Solana is starting from a better place this time. The token may be an exciting new venture for many traders.
* Khaleej Times does not recommend any investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such.
* Do conduct your own due diligence and consult your financial advisor before making any investment decisions.