The fate of one of Ethereum’s biggest competitors is in the hands of the stakers
The recovery of the cryptocurrency market continues after one of the largest exchanges in the sector announced its insolvency. The majority of digital assets in the top 10 show us a successful recovery despite the lack of inflow to the market.
Solana does not recover
As some assets return to their post-FTX-drama levels, Solana remains one of the most underdog assets in the top 100 of the cryptocurrency market. SOL investors are still waiting for selling pressure to build as 80 million stakings are released.
Such a large injection of funds into the market will certainly cause a spike in volatility which will drag Solana lower. Unfortunately, a scenario in which the unstaked bottoms simply dissolve into space seems unlikely. The only insurance for the market would be the gradual injection of funds and their subsequent realization, rather than a one-time throw of millions of coins into an illiquid market.
Chainlink moves through
Ethereum’s prosperity in the market and all the benefits the network gained from the overall situation made up for the resilient performance we saw on Chainlink over three tough days in the market.
A trip to multi-year lows has not been the case for LINK, which successfully rebounded before hitting the 2022 low of $5.3. With significant leeway, LINK bulls managed to construct a cascade of support levels that panicked investors could have circumvented in two days of trading.
With the rebound from the $6.2 price level, Chainlink should be able to avoid further dip and consolidate around the price level before the $8 dump. Prior to the FTX crash, LINK was moving within the range formed this summer.
The positive price performance of the asset could also be a potential boost for Link-based solutions that will come in handy during the reserve verification process of various exchanges. Proof of Merkle Tree reserves will most likely become a new industry standard, and Chainlink could offer solutions that will enhance the financial stability of exchanges in the eyes of their users and investors.
Ethereum avoids aggravation
The stability of Ethereum in the market amid the crash is something that most digital assets in the market could wish for. The second-largest cryptocurrency has gone through a series of selling pressure spikes smoothly without even breaching the $1,000 threshold.
The main reason for the high resilience of the asset has to do with a noticeable spike in the burn rate and the successful absorption of most of the FTX volume injected into the market in its attempt to obtain more liquidity to satisfy user withdrawal orders.
Additionally, the network has seen an increase in the burn rate, making Ethereum deflationary, with the issuance of the asset reaching -0.029% per year. With the fall of the network’s largest competitor and the increase in demand for decentralized finance, Ethereum will cement its place in the market for the foreseeable future.