One name that has been making waves recently is Solana. With its wallet growth being a topic of discussion among crypto enthusiasts, the question arises - is Solana's wallet growth real or fake?
The Growth of Solana Wallets
The FTX Collapse and Solana's Response
The FTX collapse was a significant event in the crypto world, leading to a 50% price decline for Solana. However, despite this setback, Solana's daily active wallets on all major protocols have increased dramatically, surging by over three times at the end of December. This increase occurred despite the asset's record price slump in November, indicating a strong resilience in the face of adversity.
https://twitter.com/dunleavy89/status/1611425735108952065?s=20
The Momentum of Solana
The Recent Rally and Its Implications
Crypto analytics firm Santiment has noted that the recent Solana rally was propelled by the liquidation of shorts and may now start to lose steam. The best time to have bought into Solana was during the second week of June when funding rates had bearish spikes.
The Role of Funding Rates
A funding rate of above zero indicates that market bullish sentiment is more dominant, while a rate in the negative levels indicates that bearish market sentiment is more dominant. An increasing funding rate also indicates bullishness while a falling funding rate indicates bearishness. At the time of writing, the Solana funding rate on Binance is now positive at 0.005%.Β
Solana's Partnership with Coca-Cola
The NFT Offering at the Music Event
Coca-Cola in Serbia and Solana NFT platform SolSea have teamed up for a non-fungible token offering at a music event. The deal allows the soda company to give away 100 limited edition hoodies, along with NFTs, to some participants.
The Impact on Solana's Popularity
This partnership with a global brand like Coca-Cola is likely to boost Solana's popularity and credibility in the market, attracting more users to its platform and potentially driving further wallet growth.
Solana's Performance in the Crypto Market
Predictions for Future Performance
While the reason behind the active wallets declining while cumulative wallets has gone up may suggest the bear market has had its way with Solana but they still maintain wallet growth among new users, some analysts are predicting a continued surge for the token. However, as with all cryptocurrencies, the future performance of Solana is uncertain and subject to various market factors and conditions. Vitalik Buterin remains cautiously optimistic about the future of Solana in the long run.
https://twitter.com/VitalikButerin/status/1608591727316684804?s=20
Conclusion
In conclusion, the growth of Solana wallets appears to be real, driven by various factors such as resilience in the face of market adversity, strategic partnerships, and the rising popularity of NFTs. However, as with all things in the crypto world, it's essential to do thorough research and stay informed about market trends. You can stay up with the latest trends by tuning into the Paul Barron Network streams and video uploads here:
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