Solana has been in a downward trend since the crypto exchange FTX exploded. The asset has lost much of its value, but the attack seems far-fetched. In the last seven days, losses for the digital asset have mounted, dragging prices down into single-digit territory.
Solana Posts More than 20% loss
According to crypto data aggregator Coinmarketcap, the price of Solana has fallen by more than 20% in the last 7 days. The losses are in line with the general bear market trend experienced in the crypto sector but the decline in faith in digital assets caused by the collapse of FTX, Solana’s biggest support, added pressure.
Sam Bankman-Fried, through FTX and Alameda Research, has channeled huge amounts of funding into the Solana ecosystem, which when you think about it shows why the network has grown so much in such a short period of time. However, with all the money lost, the network has found it difficult to maintain.
Also, as James Spediacci noted on Twitter, a lot of dev activity on the network is actually fake. It alleges that the SOL stablecoin exchange Saber and DeFi protocol Sunny have made up about 70% of the total value locked in the Solana block at its peak operated by the Macalinao brothers, said a report from CoinDesk.
With all this gone and no new money being injected into the ecosystem by Bankman-Fried, Solana is now on its own. In addition, Matrixport declare who will be delisting all Solana products on December 30, dealing another blow to the already struggling network.
SOL price falls to single digit for first time in 22 months | Source: SOLUSD on TradingView.com
SOL To Recover From Single Digits?
This week, the price of SOL dropped below the $10 level for the first time in almost two years. It currently sits at its lowest point since February 2021, which is the last time Solana saw single-digit prices before the bull market took over.
However, even if digital assets fall sharply, it is unlikely that the decline will end. One thing to note is how cryptocurrencies tend to perform in the first bear cycle, although bitcoin and ethereum are not exempt. But one thing that sets SOL apart is the mitigating factor.
While digital assets such as bitcoin and ethereum still have a lot of support and faith in the market despite falling more than 90% in the first bear market, Solana is having a hard time keeping faith. Add to that the fact that NFT projects led by DeGods and yOOts migrated from Solana to Ethereum and Polygon and it shows how negative sentiment is around the network.
However, this does not mean that SOL is completely out of the game. There has been an even more impressive recovery in the crypto world and SOL remains popular in the media, even in negative circumstances. The next bull market could hold a lot of promise for digital assets if they survive the crypto future.
Option image from Crypto News, chart from TradingView.com