Solana: A tale of airdrop controversy and investment enthusiasm

Solana is depicting the perfect recipe for a cinematic script. Two sides are battling for an outcome for the ecosystem. While one side feels oppressed because of the controversial airdrop, the other side finds itself floating in the sky with a rise in investor interest. What happens in the Solana ecosystem later remains to be seen; however, the present is worth dwelling upon.

Solana’s Airdrop Controversy

For starters, the airdrop controversy has put Solana in an awkward position. Members of the community were previously unhappy with the fact that there was a door open for potential manipulation of the system. Some newcomers, or the latest entrants to the ecosystem, found a way to earn more airdrops despite being on the network for a long time. They decided to infuse funds and earn points. These can alternatively be earned by lending and/or borrowing.

But they found that one sweet spot that fetches higher rewards and, hence, a better portion of the pool at the time of airdrop.

It only got worse when Solana DeFi Protocol made the idea public, telling everyone that it would reward extra awards to those who had higher points. Needless to say, it was met with a fair share of criticism, which led to the rollback of the scheme. Now, plans are in the pipeline for the KMNO airdrop to come with rewards for those who have been with the ecosystem for a long time. The airdrop is slated to happen in April of this year, 2024. The actual implementation would be better evidence to support the ecosystem.

Kamino’s social media account made it clear that members were heard loud and clear. Others believe that they would have been through had they not made their model public.

That said, April’s airdrop will happen with potentially more awards for the OG users of the Kamino ecosystem.

Investor Interest in Solana

Rising investor interest in Solana is obvious from the fact that the token is experiencing buying pressure at the moment. It is listed at $150.72, with a surge of 1.465 in the last 24 hours. Moreover, SOL is poised to surpass the $200 milestone by the end of this year or next year if the ecosystem sustains the majority of the positive developments.

The share price of Grayscale Solana Trust, also known as GSOL, has soared to $540, effectively outpacing the NAV of $55.48 per share. It only goes on to give a hint that there is robust investor interest, with AUM approaching $49.5 million.

Analysts believe that the rise in the price of Solana could be because of institutional activities, like a link to Pantera Capital. Also, the community is optimistic about the future of SOL.

Solana blockchain has grown considerably by achieving an ATH daily new address. The number now stands at 691,000. Meaning, there is a rise in user activity. The daily transactions are higher than the likes of Ethereum, Tron, and BNB Chain.

The 24-hour volume for SOL is up by 14.02%, and the market cap has soared by 1.78% while the article is being drafted. SOL, specifically, is up by 14.66% and 38.61% in the last 7 days and 30 days, respectively.

Understanding the Disparity

Solana could be chasing long-term benefits. It will still have to lay down the rules so as to be in touch with the DeFi sphere. A slight misunderstanding could hamper the actual roadmap. Long-time holders back the project and know that Solana will eventually fetch the desirable profits. Solana will still have to bridge the gap between DeFi users and institutional investors.

Solana’s Future

Solana’s future holds a dent because of the airdrop controversy. That has had little impact on the way in which SOL is climbing the ladder. Plus, user activity is gaining momentum. It is only safe to conclude that the temporary setback will be overcome for a better future for the ecosystem.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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