Solana Price Up 10% As $325 Million Restored on Wormhole Network

The last couple of days have been rather shaky for the larger market with Bitcoin’s fall to the $36,250 level which triggered a dip for major altcoins too.

On Thursday most of the coins appeared red recording losses on their daily chart, Solana too was down almost 10% as the larger market underwent a BTC-induced dip. 

Interestingly, Solana was the altcoin that dipped the most in the top ten cryptocurrencies by market cap, however, at press time SOL charted an equally good recovery from the Thursday losses. 

SOL’s Comeback

SOL dipped to as low as $94 on February 3 after attackers took advantage of an exploit on Wormhole, a popular bridge between the Solana and Ethereum networks. As Solana recovered from the recent bloodbath and DeFi hack, the price saw a decent pump. 

At press time Solana’s price was above the crucial $100 mark once again. SOL traded at $104.96 presenting 8.90% daily and 17.85% weekly gains, at the time of writing.

While trade volumes still maintained low presenting considerable skepticism in the spot markets the decent price push could change investors’ mood in the near term. 

That said another positive development that aided SOL’s growth was that the Wormhole network announced that $325 million lost to an exploit on Thursday was restored. The recovery of the stolen funds also helped push SOL’s price by over 5% within hours of the announcement. 

Jump Crypto, a cryptocurrency-focused arm of a quant trading firm helped restore the funds. 

.@JumpCryptoHQ believes in a multichain future and that @WormholeCrypto is essential infrastructure. That’s why we replaced 120k ETH to make community members whole and support Wormhole now as it continues to develop.

— Jump Crypto 🦬 (@JumpCryptoHQ) February 3, 2022

Can the Price Recovery Hold?

For now, while Solana’s price seemed to be on a track to recovery, whether the gains could sustain or not was still a matter of debate. The effect of the recent Wormhole exploit affected SOL’s trajectory but luckily for SOL investors, the price didn’t fall below the $90 mark and saw a quick rebound. 

At the time of writing, it did seem like the after-effects of the Wormhole exploit had been reverted. However, since the larger market was sensitive to Bitcoin’s trajectory another BTC dip could bring in more losses for the top coin. 

Furthermore, with the Solana ecosystem incorporating Web3Auth infrastructure, the same could also aid gains.

The Solana Foundation recently announced a collaboration with Web3Auth where seed phrases are eliminated when a user interacts with any Solana dApps and wallets. In the past, too collaborations and partnerships have paved a smooth path for SOL trajectory and the same shouldn’t be undermined.