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At the moment, the market is not in favor of Solana (SOL), as the digital currency is down 3.66% over the last 24 hours to $22.78. This price decline highlights a pattern in a very unstable market that is still recovering from the overdrawn crypto winter. Solana is now down 8.40% over the previous seven days based on its recent performance.
Despite the current gloomy forecast for Solana, two important ecosystem developments are noticeably enough to support a short-term recovery.
A member of the Solana community named @FlipsideSolana said that during the past few weeks, there has been an increase in the overall amount of developer activity on the Layer-1 network, correcting what appears to be an error made by the cryptocurrency analytics platform TokenInsight.
He pointed out that while many ecosystem activities have resumed to levels seen before to the FTX bankruptcy, the overall number of new initiatives rocketed up in January. In addition to these ecosystem improvements and the integration of dApps, Solana is rumored to have a large number of new sign-ups for its hackathons, which might support a new phase of the protocol’s growth in terms of smart contracts.
relentless pursuit of superiority
As competition to surpass Ethereum as the leading smart contract hub heats up, Solana’s approach is to enable fresh, useful apps that can effectively serve its user base.
The meme coin Bonk (BONK), which gained popularity earlier this year, contributed to the buzz that elevated the Solana protocol to a new level within the crypto world. Since the initial excitement has subsided, protocol developers are being urged to go forward with more tried-and-true and financially sound smart contracts.