Solana climbed this week as the network continues to gain more users. Excitement around a new memecoin, Bonk Inu (BONK), coincided with the cryptocurrency’s rally. The asset is moving at a brisk pace, ignoring the recent losses associated with the FTX crash.
Solana is going through hard times. It is as difficult for the Ethereum competitor, especially the DeFi ecosystem, as it is for the entire industry in this crypto winter.
Solana’s gains pushed the coin to $13.50, which means a weekly gain of 40+%. It was trading below double digits at the end of December. So it’s Solana’s rally in the five-day box after a long, long stumble across a 30-day, 6-month, and one-year show.
1. How Solana Manages Its FTX Communications
Bonk Inu (BONK) has owned the Solana blockchain since its launch. In a one-page brief about the project, the founders say they’re eschewing “Alameda-style” tokens in favor of a currency that’s fun and gives everyone in the community a fair chance. This is good news after all the fallout from the Alameda-FTX scandal.
The platform also got a real platform Nice note From a crypto competitor, Ethereum co-founder Vitalik Buterin. He tweeted over New Year’s weekend that “smart people” he trusted had told him about Solana’s “smart, serious developer community.”
He said the chain had a “bright future” and seemed confident that “terrible opportunistic money had been washed away”. He even added that he hoped Solana would get his fair chance at prosperity.
It’s a better weekly turnaround for Solana than cryptocurrency lending partners Gemini and Genesis. They were very critical of the damage done to their clients in the solvency crisis that led to the collapse of the FTX exchange.
2. Solana Defi’s platform is still growing
So Solana seems to be handling damage from FTX well. That is if you consider how much the price has fallen in the past six months and in the month of December.
There is no downside to FTX, notes a crypto column in The Motley Fool, “The market seems to have priced in all potential bad news scenarios, driving Solana to lower bargain levels.”
On-chain data shows Solana’s monthly new address growth continued to swell throughout 2022, despite the cryptocurrency price freeze.
New monthly addresses and active monthly addresses decreased in growth in the fourth quarter of 2022, but the network continues to generate new addresses and active monthly users.
3. A new commemorative coin explodes during the New Year holidays
Enthusiasts are hailing it as Dogecoin (DOGE) by Solana. To be fair to Dogecoin, it is a blockchain fork of the proof-of-work ledger of Bitcoin (BTC). It is not an ERC-20 or BEP-20 token that lives on Ethereum or Binance, but it is a PoW tier one coin as well as a meme token.
(Dogecoin recently introduced a new 5 million DOGE Core development fund. You can read more about it here.)
But Bonk Inu is already vying for the Solana DOGE podium title.
What drove Bonk Inu’s price crazy over the holiday week was a flood of tokens. It is a page from the Binance (BNB) marketing incentive playbook.
The team went on a public campaign to copy a large number of tokens, cryptographically locking them in forever. It results in giving a value to the remaining coins in the symbol pool. So it generated a lot of excitement among the traders. Like when Team Bonk just burned 500 billion BONK tokens on December 4th.
Liquidity providers are also offering huge returns on BONK tokens at the moment due to the increasing volume and huge demand for trades. It grew in fair market value by about 3,000% in about a week.
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