Solana (SOL) has been battling outages, criticisms, and crypto winter simultaneously for the better part of the year. If the crypto’s founders and promoters had hoped for an uneventful holiday season, well, their hopes have just been dashed. In another blow to the platform, Deribit just dropped Solana futures and options from the exchange.
The move comes close on the heels of a $28 million hack on Deribit earlier this year. Clearly, Deribit is trying to consolidate its position by downsizing its operations for now. Solana (SOL) was neither the victim nor a source of vulnerability for the hack. Still, the move will affect Solana (SOL) negatively and may help other platforms in the process.
The frequent outages of Solana, combined with the exit of Deribit, will have a strong negative impact on its price. Sentiments largely drive crypto markets, and negative sentiment towards Solana (SOL) will definitely push its price lower. Even in the final week of 2022, Solana (SOL) continues to hit new lows for this year. Deribit’s offloading of Solana derivatives comes only a month after FTX’s collapse, which tanked Solana’s prices overnight.
It’s now clear that Solana has no hopes of a recovery well into Q1, 2023.
Cardano (ADA) benefits from almost anything that hurts Solana (SOL). That’s because both cryptos have positioned themselves as Ethereum-alternatives. Recently, Cardano has had the upper hand as a more effective and successful alternative to Ethereum. Cardano aims to offer faster transactions, support other blockchains, execute smart contracts seamlessly, and generally make it easy for developers to deploy dApps on its platform. With Solana, investors and developers are frustrated by its outages. Naturally, developers and investors both prefer Cardano.
However, there’s a caveat. Cardano is competing against Solana even though it’s not even fully ready. Cardano is still in the development phase. When Cardano is deployed, its real-world performance will be directly measured against that of Solana. So, whether it’s hacking, developers quitting, outages, or other issues that plague Solana, they all bump up Cardano’s prices.
Snowfall Protocol (SNW)
Snowfall Protocol (SNW) offers a variety of use cases to users. These include crypto transfers (funds and NFTs) from one blockchain to another, crypto swaps, staking, dApps development, smart contracts, and so on. Many of these features overlap with those of Solana. So, Solana’s fall fuels the rise of Snowfall Protocol (SNW) in theory. In practice, however, Snowfall Protocol (SNW) is riding a full-fledged bull run, which has witnessed its price rise by 350% in just four weeks. So, whatever is happening to Solana (SOL) has a negligible impact on Snowfall Protocol (SNW).
As Snowfall Protocol (SNW) approaches its January 2023 launch deadline, investors are grabbing its native token in a bit to benefit from the huge short-term gains.
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