•Solana’s native token, SOL, has been on a tear since the beginning of 2021.
•Recent on-chain developments have caused the price of SOL to skyrocket, but it is now facing a rejection.
•The Solana Foundation has distanced itself from its former CEO, Sam Bankman-Fried, and the now-defunct crypto exchange FTX, to restore the ecosystem’s bullishness.
The crypto market has been experiencing a surge of activity since the start of 2021, with the Solana ecosystem being no exception. The native token of the Solana blockchain, SOL, has been on a rapid rise, with its price more than doubling in the first four months of the year.
The rise of SOL has been attributed to a number of factors, with the most prominent being on-chain developments. One of the most notable developments was the launch of BONK, a token that runs on the Solana network. The launch of BONK caused the usage of the Solana network to skyrocket, leading to increased demand for SOL.
However, SOL’s climb up may have been hampered by the fears surrounding its former CEO, Sam Bankman-Fried, and the now-defunct crypto exchange FTX. To restore the confidence of the market and distance itself from these factors, the Solana Foundation commissioned the Messari overview, an independent report detailing the relationship between the Solana Foundation, Sam Bankman-Fried, and FTX.
Since the release of the Messari overview, SOL has been on a steady climb, with its total market cap surpassing $7.6 billion as of May 14th. Despite the current rejection, Solana’s native token looks to be on the path to regaining its bullishness, with many believing that the ecosystem is an “Ethereum killer” due to its low transaction fees and its capability to go through thousands of transactions per second.
The Solana ecosystem is one of the most promising projects in the crypto space, and its native token has been performing admirably since its launch. The recent rejection may have caused a slight dip in the price of SOL, but with the confidence of the market restored by the Messari overview, the token looks to be on its way to reclaiming its bullishness.