Solana (SOL) has turned the tables in the market and is now on a recovery path towards $100 as per recent market data.
The token has seen nearly 13% of gains in the last 24 hours and is, as of writing, trading at $93.60. SOL nosedived to a multi-month low of $81.23 yesterday, according to CoinMarketCap, as the crypto market continued tumbling alongside US stock index futures.
Solana’s plunge was intensified by the Friday outage that made users incur heavy losses due to failed transactions. The incident triggered a deeper pullback to almost $80. The Solana network remedied the situation hours later and pledged to improve the chain to prevent similar future occurrences.
Some Solana users have, however, posed questions about the platform’s ability to handle transactions. In a series of tweets posted today, FTX chief executive has defended the layer one blockchain alluding that some of the criticisms on Solana are harsh.
Solana has consistently processed more Txs than all major chains combined, even with outages
FTX exchange’s co-founder and CEO took to Twitter to speak in support of Solana regarding the network performance issues that have become synonymous with the network. While the billionaire techprenuer acknowledged that Solana had experienced degraded performance, he pointed out that the performance metric was relative.
He implied that the term ‘degraded’ could not best indicate how poor the network was and in what respect. He further stated that Solana had performed well even during the spells it experienced outages.
“As far as I can tell, during the week when it’s had performance issues, and if you exclude all of the voting transactions from the TPS… …it’s still processed more transactions than all other major blockchains. Combined,” Bankman-Fried wrote.
Making progress is what matters
The FTX chief noted that Solana processes a huge number of transactions, albeit not as much as it potentially can. This, he explained, meant there was a lot to be done to make the chain scalable.
Bankman-Fried urged Solana users not to lose sight of the bigger picture. He cited progress as the key element in the advancement of the network, adding that failure is part of the development process. He concluded by revisiting his previous tweet about ‘slack in the system.’
“Solana is mostly out of slack–the demand from transactions has reached the supply. So, you keep working to increase the throughput of the system, and the efficiency, to scale with the demand.”
His latest remarks carry a bullish tenor which is not surprising as he recently backed Solana and Avalanche (another Ethereum rival) in an episode of Decrypt’s podcast. He described Solana as one of the handful L1 blockchains with ‘a real plausible path forward in scaling to the level you would need to get to if you wanted industrial-scale usage’.
Solana (SOL) market performance
Solana token’s market activity suggests that it has almost dusted off the heavy losses it suffered at the start of the week. SOL/USD surged to an intraday high of $95.74 yesterday and is currently trading in the $93 range.
SOL/USD 24 hr trading chart
The pair currently has the biggest 24 hr. gain among the top ten cryptocurrencies. Still, it is trading about 32% off its price level last week at such a time. Trading volume on the day is up as well by over 20%.
On the back of the price recovery, the token’s market capital has increased by 8.15% in the last 24 hours. Solana, boasting a market value of $29.27 billion as of writing, has reclaimed seventh place from XRP, whose market capital is closing in on $29 billion.
To learn more about this token visit our Investing in Solana guide.
The post FTX Co-Founder Sam Bankman-Fried Sticks Up for Solana, SOL Leading Top 10 Crypto Coins in Daily Gains appeared first on Securities.io.
