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Wormhole’s $3 billion debut: Here’s how it impacts Solana

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The Wormhole airdrop has attracted significant attention, leading to a surge in activity on the Solana network.

Solana Wormhole

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  • Wormhole airdrop garnered massive attention causing activity on Solana to rise.
  • Sentiment around the network turned positive.

Wormhole, a cross-chain bridge, commenced an airdrop to reward early users with 617 million units of its freshly minted governance token W.

The token debuted on Solana [SOL]-based decentralized exchange (DEX) OpenBook at an initial price of $1.66, boasting a market capitalization of $2.98 billion and a fully diluted valuation of $16.5 billion.

Any problems for Solana going forward?

The airdrop of W tokens to early users incentivizes participation and engagement within the Solana network. This influx of new users can lead to increased adoption of the ecosystem, driving up transaction volumes and ecosystem activity.

However, the surge in attention to Solana could cause problems for the network as well.

Wormhole warned users that the airdrop could cause congestion issues on Solana. If congestion issues lead to delays or difficulties for users, it could cause a decline in sentiment around the network.

Source: X

At press time, however, data indicated that the Solana network was fully functional and the network had not seen any hiccups.

Source: Solana Status

Even though the state of the network was fine, there were other issues.

Coinbase has stated that certain users might be encountering delays in sending and receiving transactions for Solana. However, they ensured that users’ funds are secure.

Source: Coinbase

How is Solana doing?

The number of users on the Solana network had also grown despite these problems. Token terminal’s data revealed that the number of daily active users grew by 76.2% in the last month.

Moreover, the revenue generated by the protocol had also grown by 494.6% owing to rising activity on the network.

These factors could end up impacting the overall sentiment around SOL in the future. At press time, the sentiment around the network remained relatively positive.


Read Solana’s [SOL] Price Prediction 2024-2025


AMBCrypto’s analysis of Santiment’s data revealed that the weighted sentiment around Solana had increased. This meant that the number of positive comments around the network had outnumbered the negative ones.

The social volume around Solana had also increased during this period, indicating that its popularity across social media platforms had surged.

Source: Santiment

 

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Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
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