Solana (SOL), the token that powers the same-named blockchain network, fell by 5.8% in the afternoon of Friday (29) and is currently trading at US$ 9,40.
Previously praised by the now-former founder of the FTX cryptocurrency exchange, Sam Bankman-Fried, Solana fell below $10 for the first time in over two years.
Overall, SOL lost 96.3% of its value, in the last year. In November of 2021, Solana’s native token was worth a whopping $259. Today, Solana’s market cap is worth around $3,4 billion.
This makes the once fan-favorite blockchain rank 18th in the list of top 20 cryptocurrencies in the world.
The close relationship Solana had with FTX and its former CEO Sam Bankman-Fried can very well be the “nail in the coffin” for the blockchain. Since the exchange’s collapse, the SOL token dropped from $35 to today’s $10 margin, representing a roughly 70% devaluation.
However, there is still a potential that Solana could bounce back to a more “investor-friendly” margin. As it stands, the cryptocurrency market is showing signs of recovery after the devastating losses from the FTX crash.
In addition, Solana is now ranking among some of the top losers in mainstream cryptocurrencies. Along with SOL, the FTT token and LUNA all had similar losses of roughly 97% in 2022.
If that also involves the Solana blockchain, SOL could return to the $15 value it had early in November. That would mean a 50% increase in value for the token.
Solana’s Most Famous NFT Collections Are Leaving The Platform
To make things even worse for Solana, the top NFT projects on the Solana blockchain recently announced they would be leaving the platform.
This week, NFT project DeGods announced a move to the Ethereum blockchain. Meanwhile, the other most-valuable NFT project on Solana, y00ts, announced a transition to Polygon early in 2023.
The move will also include DeGods’ token DUST, to be transferred to Ethereum.
It seems as if it’s getting harder to see a light at the end of the tunnel for the once well-appraised blockchain company.
On top of losing its most valuable NFT projects and seeing its token devalue by 97%, Solana Blockchain also had to deal with reoccurring technical difficulties in 2022, many of which completely crashed the platform for several hours.
Wetter Solana can perform a “miracle” in 2023, and rebound back into being one of the most respected blockchains in the world, is still a mistery.
