Vitalik Buterin Showcases Support for Solana Despite 95% Price Drop Since All-Time High

Cryptocurrency solana (sol) has seen a surge in its price in the past 24 hours, with an increase of over 11%. ethereum founder vitalik buterin has shown his support for the cryptocurrency, saying it has a “bright future”. this comes despite the fact that solana has dropped from fifth place on the list of largest cryptocurrencies by market cap to 19th, and has lost 95% of its value since reaching an all-time high of nearly $260 in november 2021.

Recent price surge happened earlier this month, and the collapse of crypto exchange ftx and its sister firm alameda research has likely contributed to solana’s recent price woes. the solana foundation shared details of its financial entanglement with ftx and alameda research, which was invested in 17 total solana projects, worth about $3.26 billion in total. additionally, two popular nfts projects, degods and yoots, are set to migrate away from the solana network in the first quarter of this year, to the ethereum and polygon networks respectively.

Recent price surge and subsequent drop in solana’s market cap is likely due to the migration of these nfts projects away from the solana network. buterin has said that the solana community “gets its fair chance to thrive” and that “smart people” have told him there is an “earnest smart developer community in solana”. the cryptocurrency is sometimes referred to as an “ethereum killer”, but it remains to be seen whether it can live up to this nickname.

By Evey Lovelace

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