$SOL: Citi Says Solana’s Transaction Activity Is at Pre FTX Collapse Levels

Citi (C), in a analysis research printed on Thursday (12 January 2023), said that even supposing an estimated 50 million Solana (SOL) cash are caught within the Chapter 11 proceedings of cryptocurrency change FTX, there’s nonetheless a big quantity of exercise on the Solana blockchain.

Right here is how Coinbase described Solana in a weblog submit printed on 29 June 2022:

“Solana is a decentralized computing platform that makes use of SOL to pay for transactions. Solana goals to enhance blockchain scalability through the use of a mixture of proof of stake consensus and so-called proof of historical past. Consequently, Solana claims to have the ability to help 50,000 transactions per second with out sacrificing decentralization, and is without doubt one of the largest proof of stake blockchains by market cap.

“Solana goals to allow good contracts to permit builders to construct a variety of decentralized finance (DeFi) apps, new crypto tokens, video games, and extra. When customers stake their crypto, they make the underlying blockchain of that asset safer and extra environment friendly. And in change, they’re rewarded with extra property from the community, that are paid out as rewards.“

In line with CoinDesk’s report about Citi’s analysis be aware, this has considerably decreased the quantity of the cryptocurrency that’s now in circulation and has exacerbated the extent of uncertainty over the way forward for blockchain expertise.

Analysts led by Joseph Ayoub said:

“Nevertheless, quite a few important measures like as energetic addresses and day by day non-fungible-token (NFT) site visitors have recovered to pre-FTX-collapse ranges.This may doubtlessly point out consolation from some customers on the chain.“

Citi says builders have continued to be energetic on the blockchain, as seen by the current airdrop of the brand new challenge Bonk Inu ($BONK) to holders of Solana.

Right here is Bybit explaining the $BONK token:

“Bonk is the primary Solana canine coin that particularly helps this group and focuses on lifting the platform from a low level in its historical past. Bonk’s builders recognized challenges that Solana confronted properly earlier than the current FTX debacle that despatched SOL costs tumbling. This public blockchain platform had constantly been one of many higher-rated platforms, however not too long ago, it has been impacted by nefarious gamers who’ve largely been interested by taking advantage of the platform slightly than rising it.

“Bonk is a meme token that launched on Solana in December 2022 with an airdrop of roughly half of its token provide. Many of those tokens discovered their approach into the crypto wallets of prime NFT builders, buyers and different key gamers. Whereas this airdrop had an instantaneous and optimistic impression on the Solana value, the longer-term impression of Bonk’s debut on the Solana group can also be promising.”

Citi’s be aware identified that Solana’s largest NFT assortment, DeGods, had simply departed the community, citing uncertainties about its future. Citi additionally talked about that Solana’s main job is to encourage customers and builders to stay loyal to the platform.

On Monday (9 January 2023), with $SOL up 21% on the day, Mike Dudas, Founder and Normal Accomplice at NYC-based enterprise capital agency sixth Man Ventures (“6MV”), mentioned that Solana’s expertise, merchandise, and group are “too sturdy” for $SOL to fall to $0 (which is what some doomsayers anticipate to occur).

Dudas, who can also be presently Vice President and Head of Stablecoin Enterprise Improvement at fiat-backed stablecoin issuer Paxos, instructed his over 129K Twitter followers in a now-deleted tweet: