The FTX exchange collapse did have an impact on the Solana blockchain (and its ecosystem), as well. The market sentiment at the time shook Solana since it has had a historic association with the bankrupt FTX exchange, per a recent Coinbase (COIN) report.
The Coinbase report states, the Solana protocol’s fundamental value proposition is technically tenacious. Coinbase reports the Solana blockchain is poised to affirm its position as a worthy layer-1 (L1) rival.
Analyst Brian Cubellis writes, the fundamental value proposition of the Solana protocol persists from a technical perspective.
Given the ecosystem’s relative strength in terms of current network activity (e.g. transactions, users, development), we believe Solana is well positioned to reassert itself as a genuine layer-1 competitor.
The said report explains that Solana was “intentionally designed for native scalability at the base layer.” With an augmented proof-of-stake (PoS) consensus mechanism, plus a timestamping function (i.e., proof-of-history or PoH), Solana processed over 65,000 transactions per second (on its testnet).
The Coinbase report notes, A blockchain optimized for high throughput, de minimis costs and native scalability, Solana represents a legitimately differentiated approach within the layer-1 landscape.
Solana’s key deployed protocols as per the report are QUIC (a Solana data transfer protocol), local free markets, Jito-Solana (a modified validator client), and Stake-weighted Quality of Service. Token-22 and Firedancer are in the testing phase. A new version of Solana runtime, called Runtime v2, is proposed to support the Move programming language.
Solana’s “crypto-specific mobile stack” promises the Saga phone is forthcoming. Reportedly, as per the Solana co-founder Anatoly Yakovenko, the “perceived linkages” of the Solana blockchain with FTX have been exaggerated. Solana reportedly could be in a better position to “attract and retain developer talent,” thereby steering “future user adoption and network activity.”
