Solana's Cardinal Protocol to Cease Operations

Solana’s Cardinal Protocol to Cease Operations

Updated: 30 June 2023

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Solana’s Cardinal Protocol is shutting down operations due to economic conditions.

The protocol announced on Twitter that users should withdraw their funds by August 26.

https://twitter.com/cardinal_labs/status/1674092964124176387?s=20

Cardinal Labs was designed to support NFT use cases on the Solana network by providing protocols and software development kits (SDKs). They enable staking, rentals, subscriptions, royalties, and trading.

As per the closing schedule, certain operations will cease on July 19. This includes creating staking pools, token management, NFT rentals and rental extensions, social media handle services, and new deposits.

Users must complete their withdrawals by August 26, which marks the conclusion of the two-month notice period. According to Cardinal, the remaining assets will be forcefully withdrawn to the depositors’ addresses.

“We have done our best to navigate this extremely challenging macroeconomic environment since we started building 18 months ago. However, like many others, we have faced difficulties.”

They also acknowledged that NFT-based products had gained significant traction. However, they remain “within the context of the crypto maximalist community.”

Solana Surges Amid Disappointing News

Despite witnessing a rather disappointing turn of events in the last 24 hours, the price of Solana has shot up and is currently trading at $17.62, marking a three-month high.

SOL has outperformed the leading cryptocurrencies, Bitcoin and Ethereum, in terms of recovery. The altcoin’s price has increased by more than 10% in the past day, surpassing the recovery rates of Bitcoin and Ethereum.

Solana’s price is approaching the critical barrier at $17.61, which was last tested in March. If the price surpasses this level, it will signify a significant milestone for Solana and further fuel the positive sentiment surrounding the cryptocurrency.

The surprising reaction of the token’s price to recent events can be attributed to an announcement made by Cardinal, a blockchain’s NFT supporting platform. Although the details of the announcement are not specified, it is evident that the market has reacted positively to this news, leading to the surge in Solana’s price.

The recent development has had a detrimental effect on Solana NFTs, causing a significant decline in their value within a short span of less than 48 hours. MagicEden, a prominent NFT marketplace on Solana, experienced a substantial drawdown of 78% in daily transactions.

Solana NFT transactions. Source: Dune.com

On June 27, the number of transactions plummeted from 125,000 to 27,000. This rapid decline indicates a significant setback for Solana NFTs and their market performance.