Solana SOL/USDexperienced the fallout in the crypto markets like other cryptocurrencies in 2022.

But its technical fundamentals remained strong despite the collapse of FTX, which has had an excessive impact on the blockchain ecosystem, according to a recent study report by Coinbase.

What happened: Given the network’s historic relationship with the now-defunct exchange, the Solana community was just as surprised as the broader market by FTX’s collapse.

Still, Solana’s founder, Anatoly Yakovenko, believed that the blockchain’s “perceived connections” to FTX had been overstated in the past.

Technically, the core value proposition of the Solana protocol remained intact.

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Solana is optimized for high throughput, low cost, and native scalability, making it a “legitimately differentiated approach within the Layer 1 landscape.” coin base Analyst Brian Cubellis.

Given the ecosystem’s relative strength in terms of network activity related to transactions, users, and development, Solana is well positioned to reassert itself as a true Layer 1 competitor.

Why it matters: Solana’s activity on these fronts compares favorably ether ETH/USDsuggesting that the Solana token may be undervalued compared to Ethereum.

The report also noted that Solana’s market cap was only about 4.3% of Ethereum’s, while the number of daily active users on the blockchain accounts for about 43.7% of Ethereum’s daily active user base.

In addition, Solana processes about 17 times the number of daily transactions processed by Ethereum.

As the cryptocurrency market continues to evolve, Solana’s value proposition as a blockchain could become even more valuable.

Continue reading: FTX founder Sam Bankman-Fried faces new criminal charges for alleged fraud and illegal campaign contributions