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BNBChainCore Unveils Plan To Recoup & Repay After BNB Bridge Exploit

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BNBChainCore has put forth a proposal on the Venus forum that could potentially reshape the future of the BNB Chain by targeting a notorious exploiter. The proposal, titled “BNB Bridge Exploiter Account Remediation,” outlines a comprehensive plan to seize the exploiter’s collateral and settle outstanding debts while avoiding any market-wide liquidation of BNB.

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BNBChainCore’s Proposal On Venus Forum

The proposition is designed to grant BNBChain the authority to confiscate the BNB Bridge exploiter’s collateral, totaling 630,240.00 BNB. Additionally, it aims to resolve unsettled obligations of 58,440,000 USDT and 37,440,000 USDC, bypassing the necessity of BNB liquidation in the market.

As of December 11, 2023, the exploiter’s balance includes substantial BNB, USDT, and USDC holdings. To navigate this situation, the proposal advocates implementing a forced liquidation mechanism. BNBChain would have the authority to enable forced liquidation for the exploiter’s position, followed by the seizure of the remaining BNB post-liquidation.

The proposed plan comprises a series of meticulous steps, including the liquidation of 100% of the exploiter’s USDT and USDC positions, the seizure of the remaining BNB, and the claiming, seizing, and forwarding of the XVS tokens allocated to the exploiter’s account to the Venus treasury. The execution of these steps is envisioned to reduce the exploiter’s debts and potentially address Venus Protocol’s shortfall.

The financial calculations and projections detailed in the proposal offer a comprehensive overview of the exploiter’s balance, outstanding borrow amounts, accrued XVS emissions, and potential shortfall repayment scenarios. The forced liquidation process is expected to incur a 10% fee, with 5% allocated to the community treasury and 5% to BNB Chain, contributing to the overall shortfall repayment.

Following the settlement of outstanding debts, the proposal outlines the asset recovery process involving acquiring the remaining BNB from the exploiter’s holdings. The protocol fees generated from the liquidation will be redeemed, and the XVS rewards allocated to the exploiter’s account will be claimed and seized.

Nevertheless, the proposed strategy seeks to safeguard the interests of the Venus Protocol by efficiently managing the exploiter’s funds and addressing potential shortfalls. The outlined process ensures a transparent and systematic approach to resolving the BNB Bridge exploits, aiming for a comprehensive repayment that benefits both the community treasury and the BNB Chain.

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Tether Takes Swift Action To Freeze Exploiter’s Address In Security Breach

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Tether, the issuer of the largest stablecoin in the world, has taken a bold step to freeze the address of an exploiter who attempted to steal funds from its users. The blacklisting of the address, identified as 0x65…5c2d, occurred on December 14, according to Paolo Ardoino, the CEO of Tether.

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The blacklisted address holds a significant amount of assets, totaling 44,000 USDT (Tether’s stablecoin), along with STETH and USDC, contributing to a cumulative value of 412,000 USD. Tether’s proactive measures demonstrate a commitment to preserving the integrity and security of its users’ assets.

The exploit and subsequent freezing of the address shed light on the ongoing challenges faced by cryptocurrency platforms in maintaining robust security protocols. Ardoino’s swift action reflects its dedication to promptly addressing security concerns to mitigate potential risks for its users.

As the crypto community navigates a dynamic landscape, incidents like these underscore the critical role of proactive security measures in protecting digital assets. The move not only protects its users but also sets a precedent for other platforms to stay vigilant and take swift action against potential threats.

Tether’s Commitment to Transparency

Ledge­r recently issued an update­ called Ledger Conne­ct Kit version 1.1.8 to fix a security issue. The­ harmful version impacted versions 1.1.5 to 1.1.7. The­ hacker used a fraudulent Walle­tConnect project to redire­ct funds to their wallet.

After receiving a warning, Ledger’s team quickly resolved the problem within 40 minutes. As a result, the malicious file­ was only active for about 5 hours. The timeframe­ for draining funds was even shorter, lasting less than two hours.

Tether’s commitment to transparency and rapid response contributes to the collective effort of building a more secure and resilient crypto ecosystem. The company has been transparent about its audits, reserves, and operations for years and has faced several controversies over its backing assets and legal issues.

However, the company has also been proactive in improving its security practices and preventing future exploits. The firm has implemented various measures such as multi-signature wallets, cold storage wallets, encryption key management systems, anti-money laundering policies, and compliance programs.

Related Reading | Tether Launches New Policy To Boost Stablecoin Security And Adoption

S&P Global Ratings Launches Stablecoin Stability Assessment

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S&P Global Ratings, a leading provider of credit ratings and risk assessments, has launched its stablecoin stability assessment, which evaluates a stablecoin’s ability to maintain its peg to a fiat currency. This is a significant advance in the firm’s commitment to supporting both TradFi and DeFi clients with its robust analytical and risk assessment capabilities.

S&P Global Ratings uses its analytical approach to assess a stablecoin’s stability on a scale of 1 (very strong) to 5 (weak). The approach considers various factors that can affect a pegged cryptocurrency’s stability, such as asset quality risks, over-collateralization requirements, and governance.

Eight Leading Stablecoins Ranked From Strong To Weak

As part of the launch, S&P Global Ratings has published public assessments of eight leading stablecoins: DAI, FDUSD, FRAX, GUSD, USDP, USDT, TUSD, and USDC. These pegged digital currencies have different designs and features, such as the type of assets backing them, the degree of decentralization, and the governance structure.

According to S&P Global Ratings’ analytical approach, the pegged digital currency stability assessments for the eight stablecoins range from 2 (strong) to 5 (weak) in terms of their ability to maintain their peg to a fiat currency. The table below shows the summary of the assessments:

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The quality of the assets backing the stablecoin is a critical driver of the final assessment. Stablecoins backed by crypto assets, such as DAI and FDUSD, have higher assessments than those backed by US dollars or other assets, such as USDT and USDC.

Crypto assets have lower credit risk and higher market value than fiat currencies or other assets. However, crypto-backed pegged digital currencies also face higher custody and volatility risks, which require over-collateralization and liquidation mechanisms to mitigate.

Pegged Cryptocurrencies Are Not Immune To Risks

As we look to the future, we see stablecoins becoming further embedded into the fabric of financial markets, acting as an important bridge between digital and real-world assets. Nonetheless, it’s important to acknowledge that stablecoins are not immune to factors such as asset quality, governance, and liquidity, said Lapo Guadagnuolo, senior analyst at S&P Global Ratings.

Pegged cryptocurrencies are not without challenges and risks. They face regulatory uncertainty, operational complexity, and technological vulnerabilities. They also depend on the trust and transparency of their issuers and operators. Therefore, robust stability assessments are essential to inform investors and users about the risks and benefits of using pegged digital currency.

S&P Global Ratings’ stablecoin stability assessment is a valuable tool for the digital asset ecosystem, as it provides an independent and objective evaluation of a pegged cryptocurrency’s stability. By applying its deep expertise in risk assessment, S&P Global Ratings aims to support the growth and innovation of both TradFi and DeFi with its pegged digital currency stability assessment.

Related Reading | Binance Challenges SEC’s Case: Asserting Irrelevance Of $4.3B Settlement

Solana’s 20% Surge Amidst Stablecoin Boost

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The decentralized finance analytics platform, DeFiLlama, reported an 8% surge in the supply of stablecoins on the Solana blockchain, reaching a total of $1.67 billion in the past week. Tether’s USDT maintained its dominance, constituting 54.02% of the market share. Meanwhile, the supply of the second-largest stablecoin on the chain, USDC, experienced a notable 20% increase, reaching $735 million, while USDT remained relatively stable. Over the same period, SOL, the native cryptocurrency of the Solana blockchain, recorded an impressive 20% surge in value.

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While Bitcoin often captures the attention of market observers, Solana has emerged as a favored alternative among institutional investors. Crypto investment funds witnessed a continuous influx of capital last week, with particular interest in the sixth-largest cryptocurrency by market capitalization.

According to a recent report by CoinShares, a digital asset fund manager, Solana received $3 million in investments, highlighting the growing institutional interest in the altcoin. Notably, high-profile entities such as Visa and Shopify have recently announced their utilization of the SOL blockchain, contributing to its increased appeal. Presently, SOL is trading at $70.6, displaying a marginal hourly decline but showcasing an impressive 16% gain over the past seven days.

Solana Projects Gain Traction

In addition to the institutional interest, Solana’s blockchain has garnered attention for two trending tokens. JITO, a staking initiative built on the network, gained significant visibility as its native token, JTO, secured a prominent position on the trending tokens list across various social media platforms, including X, Reddit, Telegram, and 4Chan.

Furthermore, Bonk Inu [BONK], a canine-inspired token on Solana, has outperformed Pepe, establishing itself as the third-largest meme coin with a remarkable $727 million market capitalization. Despite trailing behind SHIB and DOGE, Bonk Inu has positioned itself as a significant social layer and utility token on SOL, ranking only below SOL and USDC in terms of platform usage. It boasts over 680,000 unique holders and has established partnerships with more than 300 entities, solidifying its presence and influence within the Solana ecosystem.

Solana’s BONK Taipei Debut: Claims 3rd Memecoin Spot

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Bonk [BONK], a canine-inspired token on Solana, has recently outperformed Pepe, securing its position as the third-largest meme coin with an impressive $727 million market capitalization. Despite this accomplishment, Bonk Inu still lags behind the leading dog-themed tokens, Shiba Inu and Dogecoin, boasting market caps of $6 billion and $14.4 billion, respectively. The notable disparity underscores the significant ground Bonk Inu has yet to cover.

While Bonk Inu faces a substantial gap in market capitalization when compared to SHIB and DOGE, it has exhibited exceptional price growth, surging by more than 400% in the past month alone. This remarkable ascent has propelled Bonk Inu to reach new yearly highs, even as the Solana [SOL] token recorded a slight pullback from its peak of $65 on December 2. Despite this temporary setback for Solana, the bullish momentum and renewed interest in Bonk Inu have captured the attention of market participants.

The official handle of the memecoin project has released a blog post outlining upcoming community activities. With over 680,000 unique holders and 300+ partners and integrations, Bonk Inu has positioned itself as the social layer and utility token of Solana, ranking only below SOL and USDC in terms of usage on the platform. This distinguishes Bonk Inu from the typical dog-themed coins prevalent in the market, the team claimed in the blog.

Solana Memecoin Celebrates BONKmas

Building on the momentum of a remarkable year, BONKDAO is gearing up to celebrate its first anniversary with a special holiday event named “The 12 Days of BONKmas.” This celebration will showcase featured Bonk partners and products, potentially marking the inaugural release of a future rewards program for engaged Bonk ecosystem supporters.

In a noteworthy development, Bonk has secured a listing on ACE, one of Taipei’s major cryptocurrency exchanges, coinciding with the commencement of Blockchain Week in the nation. Further updates on this listing are eagerly anticipated.

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Solana's BONK Taipei Debut: Claims 3rd Memecoin Spot 7

Bonk’s recent gains can be attributed to various factors, including its listing on prominent centralized exchanges such as Binance and KuCoin. Additionally, futures data indicates a substantial increase in open interest over the past month, signifying heightened trading activity in Bonk derivatives and contributing to the token’s overall volatility.

The Role Of Bitcoin In Safeguarding Western Civilization: Coinbase CEO’s Perspective

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In a recent tweet, Brian Armstrong, the Co-founder and CEO of Coinbase, shared his perspective on the potential role of Bitcoin in preserving Western civilization. Armstrong expressed the idea that Bitcoin could serve as a crucial factor in extending the longevity of Western societies.

He pointed out a natural trend observed in countries with reserve currencies, explaining that there is a tendency to inflate the money supply and engage in deficit spending until the currency loses its advantage. Armstrong suggested that the United States is currently navigating this journey, a topic previously discussed by financial experts, including Ray Dalio in his work, “The Changing World Order.”

Armstrong acknowledged the challenges faced by other major currencies like the Yuan and Euro, dismissing them as viable alternatives at present. However, he introduced the concept that people now have a viable alternative in the form of cryptocurrency, particularly Bitcoin. He theorized that individuals might begin shifting from traditional fiat currencies to cryptocurrencies to protect themselves against inflation.

Bitcoin As A Complement, Not A Threat

Contrary to the potential concerns of some observers, Armstrong asserted that he doesn’t view this shift as a threat to the U.S. dollar or the United States. Instead, he sees it as a natural check and balance system that could complement the dollar and act as the best defender of long-term American interests and, by extension, Western civilization.

Armstrong elaborated on his perspective by stating that individuals should move from dollars to cryptocurrencies rather than relocating to another country or adopting a different region’s fiat currency. He further emphasized that both fiat and cryptocurrencies could coexist for an extended period, with the two serving as complementary elements rather than direct substitutes. Additionally, Armstrong highlighted the significance of dollar-backed stablecoins, such as USDC, in bridging the gap between traditional and crypto financial worlds.

Nevertheless, Armstrong opened the floor for additional perspectives and opinions on the matter as he contemplated this idea. The potential impact of Bitcoin on the future of Western civilization remains a topic of interest and discussion within the financial and technological communities.

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Circle Denies Funding Hamas Or Banking Justin Sun In Open Letter To Senators

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Circle, the company behind the popular USDC stablecoin, has strongly denied recent accusations that it is tied to terrorist financing or controversial crypto figure Justin Sun. In a letter addressed to U.S. Senators Sherrod Brown and Elizabeth Warren, Circle’s Chief Strategy Officer Dante Disparte dismissed these claims as “false” and intended to damage Circle’s reputation.

Disparte responded to a letter sent to the Senators in November 2023 by the Campaign for Accountability (CfA). The CfA letter alleged that the company has close relationships with Sun and his Tron blockchain platform, which supposedly funded groups like Hamas, Hezbollah, and the Palestinian Islamic Jihad. It also said USDC was among $93 million worth of crypto assets seized by Israel from wallets linked to these terrorist organizations.

Circle Highlights Regulatory Compliance and Cooperation

In his letter, Disparte pointed out that the company cooperates extensively with regulators and law enforcement agencies to combat illicit finance. This includes the Treasury Department’s Office of Foreign Assets Control (OFAC), the Financial Crimes Enforcement Network (FinCEN), and the New York Department of Financial Services (NYDFS).

Disparte also admitted that Circle previously had dealings with Sun but stated this was done legally and Sun is not on the government’s Specially Designated Nationals (SDNs) list. The company has since terminated its relationship with Sun and no longer provides services to him, Tron, or any affiliates.

Denies Involvement In Terrorist Financing

Additionally, Disparte denied that USDC was used by terrorist groups, referring to public blockchain records showing only $160 worth of USDC transfers among the Israel-identified wallets. He stressed that none of those funds originated from Circle and that the company can freeze or revoke tokens it deems illicit.

Disparte closed by expressing Circle’s willingness to work with policymakers on crypto industry regulations. He invited the Senators to meet and discuss these issues while highlighting Circle’s commitment to protecting consumers, investors, and national security.

The strongly worded letter signals that the company is eager to defend itself and USDC against accusations of lax anti-money laundering controls or ties to prohibited entities. However, it remains to be seen whether regulators will open an investigation into Circle and other stablecoin operators in response to the allegations raised.

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Circle Proactively Cuts Ties with Justin Sun, Prioritizes Security

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Circle, a leading global financial technology firm, has recently come under fire from the so-called Campaign for Accountability (CfA) for its alleged role in facilitating illicit financing. In a letter to Senators Sherrod Brown and Elizabeth Warren, Circle’s Chief Strategy Officer and Head of Global Policy, Dante Disparte, refuted these claims and set the record straight on the company’s commitment to combating illicit finance.

Disparte categorically denied CfA’s assertion that Circle facilitates or finances any form of illicit activity, including Hamas. He also clarified that the exchange does not “bank” Justin Sun, nor does it have any accounts with him or his affiliated companies. In fact, the firm terminated all accounts held by Sun and his companies in February 2023.

Circle: Setting the Record Straight on Illicit Financing

Circle has a long-standing history of cooperating with regulators and law enforcement to combat illicit finance. The company has been recognized by the U.S. Secret Service for its efforts to identify and prevent fraud and scams. In addition, the firm adheres to strict regulatory requirements, including the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws.

Disparte also addressed CfA’s claims that Circle financed Hamas or Hezbollah. He pointed out that CfA’s reliance on a report by the blockchain firm Elliptic was misleading, as the report itself acknowledged that only a small fraction of the funds in question were USDC. Moreover, none of those funds were acquired from the exchange.

In response to CfA’s accusations, Circle has reaffirmed its commitment to combating illicit finance and to working with regulators to develop a comprehensive regulatory framework for stablecoins. The company has consistently advocated for strong reserving, redemption, disclosure, liquidity, and operational risk management standards for stablecoin issuers.

Circle’s response to CfA’s allegations underscores the company’s dedication to transparency and compliance. The company’s commitment to combating illicit finance and its support for robust regulatory oversight are essential steps toward building a more secure and trustworthy digital assets ecosystem.

Crypto Updates: Exploring Legal Challenges, Token Surges & Market Resilience

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Last week marked a significant turning point in the cryptocurrency industry as two major legal events unfolded, impacting some of the largest players in the space, according to the Kaiko report. The U.S. Justice Department concluded its investigation into Binance, resulting in a historic $4.3 billion settlement.

Simultaneously, the SEC charged Kraken for running an unregistered securities exchange. These developments had ripple effects across the market, influencing trading volumes, market share dynamics, and the valuation of key tokens.

Binance’s Landmark $4.3B Settlement & Market Impact

After months of legal battles, Binance, one of the world’s leading cryptocurrency exchanges, agreed to a landmark $4.3 billion settlement with the U.S. Justice Department. The settlement also saw the resignation of Binance’s CEO, Changpeng Zhao, who pleaded guilty in connection with the case. Despite the hefty penalty, the exchange can continue operating, albeit with increased restrictions and ongoing monitoring.

Binance experienced outflows of over $1 billion following the settlement, but the immediate impact on trading volumes and liquidity was subdued. Bitcoin (BTC) and Ethereum (ETH) even closed the week slightly up. Market depth for top-traded instruments on Binance initially dropped around 25%, recovering to prior levels at approximately $100 million.

However, the legal turmoil took its toll on Binance’s market share, which had already been declining throughout the year. As of yesterday, Binance’s market share stood at 46%, a significant drop from over 70% at the beginning of 2023.

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The exchange’s native token, BNB, saw volatility, dropping by 6.8% after the settlement news. BNB’s trade volume spiked to $1.6 billion, reaching its highest level since the FTX collapse.

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Oracle provider Pyth made waves in the market by releasing its long-anticipated token through an airdrop to users who had interacted with protocols using Pyth’s feeds. The native token is based on the Solana blockchain, but users across various blockchains received the airdrop.

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The token’s launch exhibited typical price divergences seen during past airdrop-based launches, with significant variations in trading prices on different platforms.

DeFi borrowing rates on lending protocols, specifically Aave V2 and Compound V2, remained high. Compound reported an annual percentage rate (APR) of about 13%, while Aave’s rates fluctuated between 4% and 15% for USDC.

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The demand for stablecoins contributed to the high borrowing rates, with utilization rates trending higher due to increased borrowing demand in the short term and the migration to respective V3s over the long term.

Moreover, Bittrex Global, one of the oldest crypto exchanges founded in 2014, announced its shutdown on December 4. Once a major player, Bittrex’s market share plummeted from nearly 20% to less than 1% since the 2017 bull market. The closure aligns with increased regulatory scrutiny by the U.S. SEC against centralized exchanges.

SEC’s Impact on Crypto Assets

The U.S. SEC’s enforcement actions against centralized exchanges and its designation of several altcoins as securities have reshaped the cryptocurrency landscape. Kraken, Coinbase, Bittrex, and Binance faced legal challenges, impacting the market value of assets mentioned in SEC complaints. Following the Binance settlement, however, the market showed resilience, with Bitcoin briefly reaching a yearly high of $38,000.

AI tokens experienced a surge in weekly trade volume, reaching a multi-month high of over $3 billion in early November. The positive market sentiment was attributed to improved macro conditions and better-than-expected quarterly results by chipmaker Nvidia. Binance, despite a decline in market share, remained the largest market for AI-linked tokens. Coinbase emerged as the second-largest market, capturing 9% of global AI token volumes.

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Bitcoin’s appeal as a portfolio diversifier strengthened throughout the year, showcasing a decoupling from traditional assets while delivering significant returns. Altcoins, including XRP and BNB, exhibited reduced correlation with BTC. Bitcoin’s outperformance in recent months attracted institutional inflows, driven by optimism surrounding a potential spot ETF approval.

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As the cryptocurrency market navigates these legal and market dynamics, stakeholders remain vigilant, anticipating further developments in the weeks to come. The industry’s resilience and adaptability will be tested as regulatory scrutiny and market forces continue to shape its trajectory.

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Solana (SOL) Bulls in Control: Anticipated 47% Growth Signals $82 Triumph

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Solana (SOL) Bulls in Control: Anticipated 47% Growth Signals $82 Triumph 22

Solana (SOL) stands out as one of the top-performing cryptocurrencies in 2023. Since the beginning of the year, its value has surged by more than 460%, surpassing Bitcoin’s (BTC) 125% increase during the same period. Despite this remarkable growth, SOL has recently experienced a correction, witnessing a 4.2% decline in the last 24 hours and a 6.7% dip over the past week. Nevertheless, it maintains a positive trajectory with a 73.1% increase in the monthly charts. Analysts remain optimistic about SOL’s short-term prospects, expecting the cryptocurrency to sustain its upward momentum.

Solana (SOL) Poised for a 47% Surge: $82 Price Target on the Horizon!

According to the analysis and predictions of “Bluntz,” there is a potential for SOL to rise to approximately $70 initially and then reach $82.50, indicating a substantial growth of around 47% from its current levels. The analyst has expressed concern about SOL’s recent drop to $54.78, considering it a warning sign. DefiLlama reports a notable increase in trading volume on Solana (SOL) decentralized exchanges (DEXs). The impressive performance of SOL in 2023 has attracted the attention of numerous traders and investors.

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Solana (SOL) Bulls in Control: Anticipated 47% Growth Signals $82 Triumph 23

Despite concerns about the possibility of FTX, a defunct crypto exchange, receiving approval to liquidate its SOL holdings, investors are actively acquiring the asset, showcasing their confidence in the project. SOL was severely impacted by the collapse of FTX in November 2022, given that it constitutes a significant portion of the exchange’s holdings, valued at over $1 billion. CoinShares’ fund flow reports indicate a consistent influx of funds into SOL for several consecutive weeks, reinforcing its market position. Analysts foresee a continued bullish trend for Solana (SOL) well into the next year.

Additionally, with expectations of a crypto market bull run in 2024, there is potential for further upward pressure on SOL’s price. Some even predict that the asset could surpass its previous peak of $259.96, achieved in November 2021, and establish a new all-time high.