Vitalik Buterin predicts Solana’s prosperity

The co-founder of Ethereum positively assessed the fact that the project broke ties with mercantile investors

30.12.2022 - 08:00

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What’s new? Ethereum co-founder Vitalik Buterin has expressed support for the Solana (SOL) blockchain team. Citing his own reputable sources, he said that “an earnest smart developer community” has gathered around Solana, and the project has prospects for development because “the awful opportunistic money people” are no longer involved. “Hard for me to tell from outside, but I hope the community gets its fair chance to thrive,” Buterin added.

Some smart people tell me there is an earnest smart developer community in Solana, and now that the awful opportunistic money people have been washed out, the chain has a bright future.Hard for me to tell from outside, but I hope the community gets its fair chance to thrive🦾🦾 — vitalik.eth (@VitalikButerin) December 29, 2022

What is going on with Solana? One of the biggest blockchain investors is trading firm Alameda Research, part of the bankrupt FTX Group. On November 22, analysts at Santiment recorded a massive shorting of SOL on the Binance crypto exchange, when the asset plummeted by 63% in just under four days.

In late November, Tether announced that it was transferring 1 billion USDT from Solana to the Ethereum network. The reason for the withdrawal of stablecoins was the blockchain’s connection to Alameda.

According to a report from the Solana Foundation, the network lost more than $180 million due to the collapse of FTX. The organization had stored approximately 3,43 million FTX’s (FTT) coins and 134,54 million Serum (SRM) coins on the platform, which are now locked on the exchange.

As of December 30, 07:30 UTC, SOL is trading at $9,11, down by 4,91% per day, according to Binance. The asset ranks 19th in the overall rating of cryptocurrencies with a capitalization of $3,42 billion, according to aggregator CoinGecko.

For what will happen to the Solana ecosystem after FTX collapses, read GetBlock Magazine’s article.

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