Decentralized finance token Solana (SOL) was one of the biggest losers from the crypto bear market of 2022. The correction accelerated towards the end of the year, with some of the losses attributed to the platform's close association with now-bankrupt crypto exchange FTX.

Solana, a blockchain company, has seen an increase in investor interest and has regained key positions in the market. As of Jan. 6, SOL had a market cap of $4.85 billion, representing an inflow of approximately $1.59 billion, up from $3.26 billion on Dec. 30.

Notably, Solana's price has benefited from increased buying pressure, which helped the token revisit key support levels. At the time of writing, SOL was trading at $13.09, up 43% for the week.

Solana and FTX's concerns

Solana saw significant losses in the $8-$10 range as concerns about the sustainability of the ecosystem arose due to its relationship with FTX and its founder Sam Bankman-Fried.

SBF is facing allegations of fraud, which has led to developers threatening to leave the platform. However, management claims that the focus should be on the network and not the price movements.

The impact of FTX has caused problems for Solana as the network has already faced criticism for regular outages.

Amid the concerns, Solana co-founder Raj Gokal shared the platform's future plans, noting that there is a lot of activity surrounding the L1 blockchains. The blockchains unite social networks, financial systems, nation-states, cultural movements, and payment networks.

Solana co-founder Raj Gokal shared the platform's future plans, noting that there is a lot of activity around the L1 blockchains. The blockchains unite social networks, financial systems, nation-states, cultural movements, and payment networks.

Solana recovers while BONK skyrockets

The recent surge in Solana price can be partially attributed to the hype surrounding Bonk (BONK), a cryptocurrency modeled after a Shiba Inu.

Bonk was distributed to the Solana Non-Fungible Token (NFT) communities and creators and has seen a sharp increase in rating since then. Consequently, the meme coin's impressive returns are viewed as a key driver of SOL's price while the broader market remains subdued.

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