As mentioned during the previous several days, certain cryptocurrency investors are once more interested in Solana (SOL). The altcoin's market capitalization increased 37% last week. However, a meme altcoin was mostly responsible for that growth.
From the very beginning of 2023, Bonk (BONK) has attracted notice. In essence, this altcoin is viewed as significant market speculation and another blockchain meme. It does have one little oddity, though.
The token on SOL's network, according to the project website, was created to separate Alameda Research's reputation from Solana and restore liquidity to the "Ethereum killer" ecosystem.
This is unquestionably an unusual fact. After all, one of the largest initiatives in decentralized finance (DeFi) and non-fungible tokens (NFTs) rose as a result of an altcoin meme, whereas legitimate enterprises with solid fundamentals do not and lacked such strength in 2022, even before the controversy involving (SBF) Sam Bankman-Fried's empire.
However, there is a strong possibility that Bonk won't sustain that buzz for very long. This further supports the idea that there is a lot of speculation about the token because there is not endless money to put into a meme cryptocurrency. The world is currently experiencing a serious lack of liquidity.
What Might Prohibit Solana From Expanding?
First, it should be emphasized that the bulls have not yet returned to the cryptocurrency market, therefore SOL's current high performance could terminate at any time. As a result, the altcoin may undergo some correction in the near future.
We can now turn to the good news with that in mind. In reality, Solana might have a successful year in 2023. The network of the smart contract platform should be improved as one of the actions to be conducted in the upcoming months.
Co-founder of Solana Anatoly Yakovenko admitted last year that he was aware of the issues associated with cryptocurrency outages. He claimed that crypto might benefit long-term from the addition of a second validator client.
There will be a unique software development team for the new feature. Yakovenko claims that as a result, the possibility of them having the same mistakes in their code virtually vanishes.
If Solana has a more resilient network, more developers may be interested in it, which will lead to more projects and more network users. This movement will be very helpful in promoting Solana.
Of course, Solana has accomplished much, and this should make him proud. While comparable initiatives that attracted attention to the SOL network in the past, like the NFT game SolChicks, did not succeed, BONK has managed to hold its own and its network has stayed steady despite the high level of interest surrounding it.
Additional Factors Playing In
Solana still has one of the networks with the lowest transaction prices, despite all the challenges of the previous year. Its user experience is also excellent for both developers and regular cryptocurrency investors. Solana's Phantom wallet, which boasts one of the best blockchain applications, is a good illustration of this.
Furthermore, the altcoin is still widely present on DeFi. After DEXs on the Ethereum (ETH) network, it's Orca DEX that has the largest volume. Given that Solana was formerly one of the largest chains in the top 10, Solana's ranking as only the 11th in terms of the chain with the highest total value locked (TVL) may appear to be a bad thing, but it merely demonstrates how it may develop.
According to Santiment data, development activity on ETH's rival blockchain has also surged, and social volume on Solana's networks is also rising. In other words, the altcoin should improve in the months to come, and the cryptocurrency world is interested in it.
