A Solana ($SOL) whale has deposited $10.2 million worth of the native currency of the smart contract platform into leading U.S. cryptocurrency exchange Coinbase, according to transaction data on the cryptocurrency blockchain.
Solana whales moved a total of 537,352 tokens to trading platforms, a move that came after Solana’s price jumped more than 16% in 24 hours, with investors’ relief following federally insured deposits spurring a broader cryptocurrency market recovery The Corporation (FDIC) has revealed that it is making Silicon Valley Bank (SVB) depositors complete.
After posting $3, major stablecoins including DAI and USDC have lost their peg to the greenback. Billions of USDC reserves are held in SVB. Notably, DAI is partially backed by USDC.
While it’s uncertain whether the whale intends to sell the tokens immediately, if it does, a large inflow into Coinbase could have a noticeably bearish impact on the asset’s value. However, Coinbase also allows users to stake Solana and earn rewards while keeping funds on the platform.
Solana’s price has risen since the deal closed, suggesting that even if the whales sold the funds, the buying pressure outweighed any potential selling pressure generated by the selling funds.
Earlier this month, a massive group of Solana whale wallets moved more than $60 million worth of SOL to the Nasdaq-listed cryptocurrency exchange in a series of transactions, suggesting the funds were moved by one entity.
Solana is a blockchain network, created by former engineers from Qualcomm, Intel, and Dropbox, that uses a delegated proof-of-stake (dPoS) consensus algorithm to achieve high performance. The network employs a unique method of ordering transactions that greatly increases its speed and throughput.
Historically, blockchain networks have faced scalability challenges, and the few networks that have overcome these challenges have encountered centralization issues. However, the creation of Solana in 2017 addressed the difficulties of developing a decentralized network with fast confirmation times and low transaction fees.
A report from Coinbase Institutional noted that despite challenges such as network outages and market downturns, Solana remains a formidable competitor in the layer-1 blockchain space.
The report highlights Solana’s focus on native scalability, its unique timestamping capabilities, and high throughput, capable of processing up to 65,000 transactions per second. Solana’s low-cost fee structure and technical capabilities were also cited as strengths.
The report suggests that Solana’s technical advantages combined with its products and services that cannot be executed on other blockchains may help it re-establish itself as a true layer-1 competitor.
Featured image from Unsplash
Source of information: Compiled from CRYPTOGLOBE by 0x Information.Copyright belongs to the author, without permission, may not be reproduced