The altcoin market is full of projects claiming to be Ethereum killers. The strongest of these, Solana (SOL), was devastated when the stock market it was associated with collapsed, FTX. Cryptocurrency graveyard next?
Solana: The biggest Ethereum killer
In the early history of Bitcoin (BTC), altcoins appeared that were said to be practical for everyday money. All these cryptos were based on the argument that they were faster than BTC and had lower fees. Intense competition did not allow some to survive to the present day, while others remain in the top 10. Litecoin (LTC) and Bitcoin Cash (BCH) are examples. Both altcoins entered the top 10 but failed to maintain their popularity.
In the following years, the first altcoin to make a difference was Ethereum (ETH). After that, it became the hub of DeFi, DEX and NFTs as a home to the major trends of the Blockchain world. The smart contract feature was the main reason that differentiated Ethereum from the others.
Solana, on the other hand, took the market step in April 2019. The biggest move in the market was the NFT sector. The altcoin project has a hybrid consensus, proof-of-stake (PoS) and proof-of-history (PoH) model to ensure scalability. It’s also designed to keep fees low for apps with billions of users. It also offers one of the lowest transaction fees on the market.
Solana is coming to an end?
Like other cryptocurrencies, Solana fell sharply in 2022. The altcoin has dropped more than 90% since its ATH price in November 2021. The latest major blow was the bankruptcy of FTX and its sister company, Alameda. In its early years, Solana had strong support from Bankman-Fried (SBF) and its companies. That was exactly the source of the fall. Currently, Alameda, which has invested in Solana, is expected to sell its holdings after bankruptcy. Solana continues to decline amid these concerns. Throughout the process, it has moved away from the top 10 in terms of market value. At the time of writing, it is trading at $15 at $12.80.
Tether made a critical announcement for SOL
On November 18, the stablecoin producer announced a $1 billion transfer to convert USDT from the Solana network to Ethereum. Tether noted that there will be no change in the total supply of the number of tokens in this process.
Meanwhile, the announcement comes as Solana, which was among the top 5 cryptocurrencies by market capitalization just a few weeks ago, had problems due to the failure of the cryptocurrency exchange FTX. Transferring cryptocurrencies from one Blockchain to another is called “chain swap”. Tether has done this multiple times in the past when demand to use their stablecoins has moved from one blockchain to another. For example, in mid-2020, Tether exchanged $1 billion USDT from Tron to Ethereum twice.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.