- It’s not out of the question that Polygon will switch Solana again.
- The FTX fall destroyed Solana as SBF was a huge advocate of the Solana Ecosystem.
In order to recover a place among the top 10 market capitalization, Solana has flipped one of its key competitors, Polygon. When the Terra collapse broke in May, SOL was valued at $5 billion, but MATIC was only worth around $16.8 million.
However, the FTX catastrophe destroyed Solana. In the weeks after the incident in November, its native token for its layer-1 network dropped by as much as 70%. Sam Bankman-Fried, co-founder of FTX and one of the protocol’s most vocal advocates and financial boosters, invested heavily throughout Solana’s ecosystem.
As soon as suspicions of systemic fraud were public, investors dumped SOL and other tokens associated with Bankman-Fried, while MATIC started to massively outperform the market.
Polygon advertises itself as a “sidechain solution” that facilitates Ethereum’s seamless operation and scalability. When Solana flipped Shiba Inu (SHIB), the second most valuable meme coin, in late January, everyone naturally wondered whether MATIC would come next.
Recent Developments Offered Boost
SOL’s current market premium is barely 1.5% more. And it’s not out of the question that Polygon will switch Solana again. Recent events in Solana, however, have been rather intriguing. The Solana Saga is a branded Android phone that comes preloaded with Web3 applications, similar to HTC’s Exodus line.
The incentive system for ad hoc wireless hotspots, Helium, which is driven by crypto, has also finished migrating to Solana. In September of last year, its community decided to stop using its own blockchain network. According to CMC, the price of SOL is $20.25 and is down 1.4% in the last 24 hours.