In past issues, we’ve discussed why it’s a good time to start taking Solana (SOL) more seriously now that its ties to FTX have largely vanished.
Here’s what we wrote back in November:
Despite Solana’s network downtime/maintenance woes, Solana is significantly faster and cheaper than Ethereum. For context, Solana gas fees currently stand at $0.000522. To make a transaction on Ethereum, on the other hand, it costs $6.58 on average. That’s a big difference… especially for developers crawling themselves out of a bear market with limited capital.
Look, in past crypto bear markets, it was common to see projects capitulate (anyone remember NEO?!) and get lost and forgotten in the black sea of altcoins. Solana doesn’t look to be one of them.
By now, it’s evident that big players and investors alike still see value in the project. In August, for example, Solana integrated with Shopify. And in September, Visa announced that it had chosen Solana to help with its stablecoin ambitions. That’s some big baller stuff for a company with a lot of bad rep.
Since we published that, Solana (SOL) is up about ~175%.
But here's another reason it's still worth watching:
Bloomberg recently reported that Pantera Captial has been raising a $250M fund to purchase locked SOL from the FTX estate. They intend to buy SOL at a significant discount ($59.95).
Given SOL's current trading price, at nearly 2.5x that discounted rate, the deal seems like a no-brainer.
But the move involves a four-year holding commitment, showcasing both the opportunity… and the risk.
The move does signal more than just a financial one; it's a nod of confidence to Solana. Getting a name like Pantera on board, for four years, definitely adds some credibility. SOL prices popped 14% on the day the news hit.
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