A top executive of Solana (SOL) says the Ethereum (ETH) rival is bouncing back after suffering the impacts of FTX’s collapse.
In a new Bloomberg interview, the head of strategy and communications at Solana Foundation, Austin Federa, says its new Dogecoin (DOGE) rival Bonk (BONK) is fostering a strong community as active addresses on the Solana smart contract platform are up.
“The last half of this year has been a tough one for the global crypto community and for some users on Solana as well. I think when you’re looking at BONK you’re looking at people having fun with blockchain again. It’s a meme coin that got airdropped to people, to thousands and thousands of wallets on the ecosystem, and it’s something that the community has galvanized behind and been able to dig into and really find a lot of fun in it.
Memes are fun. But memes are also a proxy for community. And one of the utilities of crypto that’s often overlooked is that it is a system for galvanizing community. And so the excitement around BONK is on one level, yes, it’s a meme, yes, it doesn’t actually specifically do something, but it is a token of community and especially after an ecosystem that’s been through a rough few months.”
BONK is changing hands at $0.00000135 at time of writing.
The price of Solana saw a massive decrease after Alameda Research, the trading branch of FTX and a large holder of SOL, went bankrupt along with its parent company last year, leaving the future of SOL unclear.
SOL went from a price of $36.72 in November 2022 all the way down to $9.60 in December, a 74% drop. It has since recovered and is changing hands for $23.27 at time of writing.
Federa says the Solana blockchain project is stronger now than it was before the FTX collapse.
“If you look at the beginning of November, a lot of the headlines were doom and gloom for the Solana network. And what we’ve really seen since then, we’re about what two months out from that initial news is active addresses are up more people are using the network than were before. There are actually more validators on the network than before FTX collapsed.
We’ve seen the community and developers all around the world really come together and replace the parts of the ecosystem that had FTX involvement and then expand from there. If you look at active addresses each day, Solana is higher than all other blockchains at this point.”