Here’s The Reason Solana Is Thriving Despite The FTX Case

It is nothing short of a surprise that Solana continues to show a remarkable surge despite the FTX case on the ground. So, it is no news that the FTX case is a complex legal matter. The fact that FTX, a crypto exchange, which is one of the biggest Solana investors, filed for bankruptcy was saddening. So, November 2022 had investors leaning towards the skeptical lane as they were afraid that FTX might sell its Solana holding to raise funds. However, we have seen that this currently is not the case.

The Case With FTX: The Allegations 

• The lawsuit from the Securities and Exchange Commission and other government commissions came as a huge blow for Bankman-Fried and other FTX executives. So, thanks to a court-appointed bankruptcy trustee, there was an account of an alleged case of fraud and insider trading. 
• Another section of this lawsuit had it that Bankman-Fried and some executives used FTX’s customers’ funds to prop up Solana’s price. So, there were expectations this would hurt Solana’s credibility. But this isn’t currently the case. So, how did this all play out in such a manner that leaves Solana unshaken? 

Solana On An Incredible Performance: How Is This?

Image from Nansen 

• The magnificent resilience of the Solana Blockchain remains undefeated. This is the opposite of the speculations of network pause and downfall. So, a couple of things help in Solana’s dramatic surge. One giant factor is the fact that businesses are increasingly having an interest in crypto integration into their payment schemes. So, the Solana Blockchain is fortunate enough to be one of the major platforms chosen to facilitate payments in this cause. This is likely traceable to Solana’s blockchain’s cost-effectiveness, speed, and scalability. 

• Moreover, the intelligent free market idea and the state compression strategically integrated into Solana’s technology stack gave it a major boost. And this has, in no small way, revolutionized users’ interaction on the platform. As such, there is an increment in utility, ultimately resulting in credible price stability. 

• Furthermore, Solana is attracting attention from consumer-faced apps. So, the advantages here disintegrate into some notable fractions such as;

1. Increased adoption:

If a large user base of consumer-faced apps has connections to a cryptocurrency, it increases such crypto’s potential to get across to a wider user range. So, it also increases the crypto’s chance of getting to a new pool of users. 

2. Increased value:

If crypto gets an offer of adoption by any popular consumer-faced app, it eventually promotes demand for that crypto. So, by extension, it increases the crypto’s value. 

3. Increased liquidity

With a new way to easily buy, sell, and trade any cryptocurrency with relative ease, there’s an increment in liquidity. 

Image from Nansen 

A Credible Take On Solana Issue 

Image from Nansen 

• Nansen published a credible article that provides a detailed explanation of Solana’s growth. So, the content of the report includes the growth strategies Solana employs towards the attainment of their unprecedented surge. This is also without neglecting areas like Solana’s intermittent congestion issues linked to bot activities targeting NFT mints. 

• Thereon, another Nansen analyst on X (Twitter), Sandra, took a sneak peek into the Solana framework. So, she put to light Solana’s network development and chain data and highlighted some important areas. There was also a presentation of Solana’s current incredible TVL stand of $30.95 million, which, by far, supersedes the records of earlier this year. 

Image from Nansen

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The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.