- The collapse of the FTX Exchange impacted Solana pushing it to plunge remarkably.
- Solana is now better off, thanks to the massive buying action of BONK.
When FTX Derivatives Exchange collapsed, Solana (SOL) was one of the digital currencies that plummeted but recorded a significant gain as the broader market recovered.
Considering its close association with Alameda Research, Solana slumped as low as $8.14 but is currently changing hands at $21.06, maintaining a 32% weekly growth despite the encroaching bearish turn from the market at this time.
The growth in the Solana ecosystem can be attributed to the launch of Bonk (BONK), branded as the first dog-based memecoin on the network. Austin Federa, the head of strategy and communications at Solana Foundation confirmed in a recent interview with Bloomberg that the underlying revival in Solana is a function of the heightened buying activity that BONK has recorded in the year-to-date period.
Speaking of the positive attributes of BONK and why it fast becoming a sensation amongst Solana users, Federa said,
“The last half of this year has been a tough one for the global crypto community and for some users on Solana as well. I think when you’re looking at BONK you’re looking at people having fun with blockchain again. It’s a meme coin that got airdropped to people, to thousands and thousands of wallets on the ecosystem, and it’s something that the community has galvanized behind and been able to dig into and really find a lot of fun in it.”
The crypto expert also highlighted that Solana is now more resilient than before the FTX trading platform filed for bankruptcy in November last year.
“If you look at the beginning of November, a lot of the headlines were doom and gloom for the Solana network. And what we’ve really seen since then, we’re about what two months out from that initial news is active addresses are up more people are using the network than were before. There are actually more validators on the network than before FTX collapsed,” he said adding;
“We’ve seen the community and developers all around the world really come together and replace the parts of the ecosystem that had FTX involvement and then expand from there. If you look at active addresses each day, Solana is higher than all other blockchains at this point.”
Agenda to replace Shiba Inu (SHIB)
Bonk entered into the digital currency ecosystem and with its active ecosystem growth, it has showcased itself to have what it takes to replace Shiba Inu.
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Shiba Inu is an Ethereum (ETH) based token that came to the limelight with the agenda to displace the world’s first-ever memecoin, Dogecoin (DOGE). In its own campaign, SHIB has been successful thus far, recording a tremendous Return on Investment (ROI) of 703,314.28% as compared with those of Dogecoin which is pegged at 14,398.36%.
BONK is just starting its own journey and it relies on its projected ecosystem initiatives, scheduled token burn events, and other innovations to power inclusion and a generally targeted token growth, all of which will benefit the Solana coin.