Solana (SOL) last week reached its lowest point since February 2021. But on Tuesday, its price increased more than 12% in the previous 24 hours, reversing nearly nine days’ worth of losses that had dropped its value to about $8 on Friday.
The two most valuable cryptocurrencies by market capitalization, bitcoin and ether, both moved less than 1% in the previous 24 hours, indicating some stability amid Solana’s rise.
A lot of factors have contributed to Solana’s recent volatility, including the fact that one of its most prominent supporters is the recently disgraced former FTX CEO Sam Bankman-Fried and that several important NFT projects want to quit its blockchain.
The Solana community’s interest in Bonk (BONK), a new meme coin that airdropped roughly 50% of its 56 trillion token supply to users last week, is being credited by some, however, for the latest increase. When a cryptocurrency delivers a free supply of its token to many crypto wallets, it is known as airdropping. This is done to attract new users or reward devoted community members. Bonk was airdropped in this instance to
Before gaining popularity, the Solana-focused dog currency tweeted approximately a month ago, “We’re here to thank everyone that made #Solana what it is today.”
Nearly 300,000 NFTs from the Solana NFT collections made nearly 20% of the overall airdrop supply from Bonk. According to data from CoinGecko, the shiba inu dog-themed cryptocurrency has increased by roughly 96% over the last 24 hours.
From significant decentralised exchanges like Orca to NFT marketplaces like Magic Eden, even several significant Solana projects have thought about (or really did) use the recently released coin.
Although Bonk is gaining momentum, it is extremely possible that it will follow in the footsteps of other meme or dog-focused crypto tokens that frequently see a pump, a rapid drop, and little to no rebound. However, in the meanwhile, it has assisted the Solana ecosystem in gaining pace at a time when many cryptocurrency players believed it to be doomed.
Even with the fanfare around its dog currency, Solana’s future is still questionable despite a minor comeback. As of right now, Solana is the top trending cryptocurrency on CoinMarketCap, having fallen from being the fifth-largest coin in early November to the fifteenth-largest.