Cryptocurrency Solana Roars Back With Dramatic Price Surge

It’s a real comeback — the return with fanfare of a cryptocurrency that many experts and industry sources gave up almost for dead after the bankruptcy of the empire of Sam Bankman-Fried on Nov. 11.

Solana (SOL), they said, was not going to be able to survive the earthquake represented by the fall of the FTX cryptocurrency exchange and its sister company Alameda Research, a hedge fund that also acts as a trading platform for institutional investors.

FTX and Alameda were the main companies representing the Bankman-Fried crypto empire, known by the initials SBF, in the crypto space.

‘Sam Coin’

Solana indeed had close ties to Bankman-Fried. Dubbed  ‘Sam coin,”  Sol is a token issued by the Solana Blockchain, which makes it possible to develop decentralized finance or DeFi projects that offer financial services such as loans, mortgages, financial products, etc.

The token is tied to an on-chain crypto exchange called project Serum, created by Bankman-Fried, who resigned on Nov. 11, following the bankruptcy of his empire. Serum is a liquidity hub.

Serum is one of the foundations of the Solana DeFi infrastructure, as it is the protocol and ecosystem that brings high speed and low transaction cost to Solana DeFi. It implements a on-chain central limit order book and matching engine, allowing to share liquidity and to offer powerful trading features to institutional and retail investors.

Serum is asset agnostic: It provides developers with full control and flexibility to build trading applications that leverage Serum’s liquidity and ecosystem benefits.

As if to prove the Cassandra right, Sol prices thus fell by 73% between the start of FTX’s difficulties on Nov. 6 to Dec. 31. They ended the year at $9.96 compared to $32.72 on Nov. 5. 

SOL Is Up 79%

But as fast as they crashed Sol prices are also rebounding very strongly. Over the last seven days, they are up 79% according to data firm CoinGecko. Sol knocks on the doors of the top 10 cryptocurrencies in terms of market value at last check. The token belonged to this club before its collapse. 

Prices are currently trading at…

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