Why Solana Dropped To Its Lowest Price In Two Years!
Solana, once considered one of the best-performing tokens of 2021 and a big competitor to the second largest cryptocurrency Ethereum, has been seeing its prices suffer massively this past year, losing over 95% of its value since its all-time high price in November of 2021.
Solana Under $10
For the first time in two years, Solana saw its price plunge below the $10 mark, hitting a new recent low of $9.72 at the time of writing. According to Coinmarketcap, the token is now only trading as the 17th biggest cryptocurrency as opposed to being in the top 10 earlier this year.
With Solana hitting single digits again and TVL down 97%, is the ecosystem dead?
— Blockworks Research (@blockworksres) December 28, 2022
Reason For It’s Fall
Although the current crypto winter may be one reason for why Solana’s price has sinked so low, it can be argued that the biggest factor for Solana’s big fall is due to the collapse and bankruptcy of the second largest crypto exchange, FTX.
For years, former FTX CEO Sam Bankman-Fried had constantly been a big supporter of Solana and its ecosystem. FTX was even revealed to have held $982 million in SOL.
However, since the exchange announced bankruptcy earlier this November, the token’s close association to FTX and Bankman-Fried caused Solana to take a massive hit. The cryptocurrency saw its price crash by 70% within a month.
Another reason for Solana’s price to continue tumbling down is also due to the fact that two top Solana NFT projects, DeGods and y00ts, recently announced their departure from the network. With both projects moving to Ethereum and Polygon respectively in 2023, many in the community have been growing even more skeptical towards the future of Solana.