The Solana ($SOL) ecosystem’s 7-day average active addresses have increased from 378.2 million at the end of last year to 490.5 million as of January 7, signifying a 29.7% rise in such a short period of time.
Following the demise of FTX, the price of Solana plummeted due to the cryptocurrency exchange’s engagement in its ecosystem, as many investors lost faith in the project. SOL’s price recovered after falling below $10 after Ethereum founder Vitalik Buterin expressed support for the chain.
According to CryptoCompare’s most recent Asset Report, Solana has rebounded so strongly that it is one of the best performers this year, with a more than 60% increase to $16 at the time of writing. It has crossed its 50-day moving average, which has “served as a critical resistance level over the last few months,” according to the firm’s research.
According to CryptoCompare, the increase in active addresses on Solana can be linked to increased activity from the airdrop of $BONK tokens to Solana non-fungible token (NFT) holders, as well as a sense of optimism around the network fueled by Buterin’s backing and continuous developer engagement.
The Solana community has also organised an online hackathon called “Solana Sandstorm,” which will run through January 23. The fact that $BONK was airdropped to Solan NFT holders increased network activity, indicating that the meme-inspired cryptocurrency was “able to target the most active element of Solana’s community.”
Raoul Pal, a former Goldman Sachs executive, is reportedly positive on Solana. Solana is “creating a consumer chain,” according to Pal, and has agreements with Meta, Google, Discord, and others, as well as a store in Manhattan selling Solana items.
He believes that the use of NFTs and other digital assets will skyrocket in the coming years, that Solana reminds him of Ethereum in 2018, when it was down 97% and no one noticed.