For First Time in Nearly Two Years, Solana Falls Below $10

Delfrina Yasmine . December 29, 2022

Picture: Forkast News

Techspace - Even while prices for Bitcoin and Ethereum, two of the most popular cryptocurrencies, have been reasonably consistent over the past month, Solana has continued to lose value. The once-rising alternative cryptocurrency saw a price decline that caused it to drop below the $10 threshold early this morning. This is the first time in over two years that this has occurred.

According to statistics provided by CoinGecko, the cryptocurrency known as Solana (SOL) made a new low of $9.90 early on Wednesday morning. However, as of the time this article was written, the price has recovered somewhat to even $10. The last time that Solana traded for less than $10 was in February 2021, just around the time the cryptocurrency began its surge.

After another six months, the price of Solana suddenly skyrocketed, marking the beginning of a stratospheric climb in value that would eventually reach a peak of approximately $260 per coin in November 2021. Since then, the value of Solana has decreased by close to 96%, which compares to a decline of 76% for Bitcoin and Ethereum from their respective all-time highs during the same month as Solana.

The failure of FTX and Alameda Research, two firms that Sam Bankman-Fried was responsible for founding, was a significant factor that contributed to the acceleration of Solana's hemorrhage during the previous few weeks (SBF). The former billionaire was an outspoken promoter of Solana and had made significant investments in both SOL and the environment surrounding Solana.

Layer-1 Blockchain Platform's Coin Took a Much Harder Hit Than Most Leading Cryptocurrencies As the FTX Empire Collapsed in Early November Due to a Liquidity Crunch, the layer-1 blockchain platform's coin took a much harder hit than most leading cryptocurrencies. This is apparently due to the coin's close association with SBF and the companies he owns. During the days preceding FTX's collapse, the price of SOL was more significant than $37.

Since then, the price of SOL had continued to plummet, especially when Binance disclosed this afternoon that it would not rescue FTX. Even though the situation might get much direr before it starts to improve as a result of the forthcoming staking unlock, the leaders of Solana are doing their best to instill faith in the hearts of the platform's users and contributors during the turmoil.

Even though Solana's losses appeared to have leveled out around the beginning of December, with the coin's price continuing to oscillate around the $13 mark, it has lost a substantial amount of value during the previous two weeks. The cost of SOL is currently 8% lower than yesterday, 19% lower than last week, and 29% lower than it was over the past 30 days. In the previous thirty days, the value of Bitcoin has increased by one percent, while the value of Ethereum has decreased by a little fraction of one percentage point during the same period.

The most recent drop in the price of Solana comes after it was announced on December 25 that two of the blockchain platform's most popular and valuable NFT projects, namely DeGods and y00ts, will be bridged to other venues in the early months of 2023 to make them more accessible to a broader audience.

A connection will be made between Ethereum and DeGods, enabling users to move their holdings to the industry standard platform for non-fungible tokens and decentralized applications (dapps). Meanwhile, y00ts will be bridged to Polygon, an Ethereum scaling network. This will be made possible partly by a donation from Polygon Studios, which will be used to make the transfer. In addition, the accompanying DUST token will be bridged to Ethereum and Polygon when the time comes.

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