Ethereum-Solana bridge Wormhole v2 goes live as SOL and ETH fall over 10%

Solana SOL Ethereum ETH Wormhole v2
“Hoover Dam Bypass Bridge Construction 3” by squeaks2569 is licensed under CC BY-SA 2.0

Key Takeaways:

  • Solana-Ethereum bridge Wormhole went live.
  • SOL and ETH drop, mimicking Bitcoin’s moves.

YEREVAN (CoinChapter.com) – A token bridge between the largest DeFi platform Ethereum (ETH) and August’s star programmable blockchain Solana (SOL), went live on Sep. 17. The “important milestone” in asset-bridging capabilities, dubbed Wormhole v2, promises easier value transfer from one blockchain to the other.

Solana announced the news on Friday, emphasizing the plans to include the Terra network and Binance Chain into the fold.

Wormhole v2 goes live

According to the announcement, the second iteration of the Solana-Ethereum bridge was up and running on Friday. The bridge is primarily focused on two layer-1 blockchains at the moment: Ethereum and Solana. However, Wormhole v2 did not specify the timeframe of incorporating Terra Network and Binance Chain.

Wormhole is a simple, generic protocol that delivers a pathway for any kind of information—funds, votes, programs and more—from any blockchain in the network to any other.

read the description.

The first step in implementing the new Wormhole would be to migrate the liquidity from v1 to v2. The project estimated that liquidity at $250 million in multiple assets. Solana’s cross-chain product Saber HQ will support the migration.

The team working on the asset bridge specified that the demand for such a cross-chain connection is immense. They also added that the time is perfect to “add fuel to the fire.”

There couldn’t be a better time for Wormhole V2 to launch its token bridge and add fuel to the fire, so let’s talk about what’s coming and how Wormhole will power interoperability cross chain.

commented the team.

Despite the positive impact of Wormhole v2, Solana’s SOL response was insignificant. ETH chart also looked unimpressed.

Also read: SOL continues vertical rally with 21% gains on Solana’s NFT buzz; crash ahead?

SOL and ETH daily charts

SOL/USD pair traded at 144 in the Monday session. The digital asset registered a green candle on Friday, after the announcement. It put on 17 percent but corrected over the weekend, complying with the rest of the market. ETH didn’t seem affected by the news either and lost 12 percent since Friday.

Despite the setback, the daily chart paints an optimistic picture for SOL. The token formed a falling wedge that consisted of two descending trendlines enveloping the price action and driving it down. The upper trendline topped the bullish attempts, and the bottom trendline assisted the digital asset and kept it afloat. The falling wedge is a bullish pattern. It predicts gains after the token exhausts the formation.

Solana (SOL) in a falling wedge formation. Source :SOLUSD on TradingView.com
Solana (SOL) in a falling wedge formation. Source: SOLUSD on TradingView.com

Michael Van de Poppe, the CEO of the analytical service Eight, offered a bullish stance on SOL. According to the analyst, Solana could bounce ahead as it arrived at a significant support line.

Also read: Ethereum targets $6.5K as exchange outflows reach record levels

Meanwhile, Ethereum’s ETH didn’t react to the Wormhole news. Instead, it consolidated throughout the weekend, just like the rest of the altcoin market. The second-largest cryptocurrency traded at $3,190 in the Asian-Pacific session Monday. Both digital assets seemed to mimic the Bitcoin chart, which initiated a correction across the crypto market.

Ethereum (ETH) daily chart. Source: ETHUSD on TradingView.com
Ethereum (ETH) daily chart. Source: ETHUSD on TradingView.com

Also read: ETH forms bullish technical setup amid unsuccessful Ethereum attack attempt

Ethereum and Solana complied with the ubiquitous correction led by Bitcoin but hinted at bullish continuation on the chart. However, the upcoming sessions will show if the prediction is correct.

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