Accordingly, on December 29 in a post on Twitter, Vitalik Buterin, Ethereum founder gave many compliments to Solana:
After that, SOL price suddenly spiked near $9.44 for most of yesterday. It then dropped 13.2% to $8.19 in just a few hours. The price rallied about 25% to $10.88 before falling again.
Mike Dudas, co-founder and former CEO of The Block and founder of 6th Man Ventures, noticed that the asset’s price chart resembles the “V” in Buterin’s name.
The value of SOL has dropped significantly over the past few weeks, possibly due to Solana’s relationship with FTX. In November, SOL dropped 55% and was one of the worst-performing tokens of the month.
The breakdown of SOL seems to have started around December 28. That day, it was rumored that former FTX CEO Sam-Bankman Fried would sell a large amount of SOL. It is unclear whether any such sell-off has in fact taken place.
Solana was originally created to compete with Ethereum. Despite Solana’s competitive nature, it shares a common goal with Ethereum. Both blockchains support programmable smart contracts, allowing developers to create custom tokens, DeFi applications, and NFTs. Solana’s original strategy involved moving towards high throughput: Solana supports up to 50,000 transactions per second, while Ethereum supports 17 transactions per second.
SOL is currently the 17th largest cryptocurrency by market capitalization with a capitalization of over $3.5 billion.