Solana Has Lost Over $50 Billion In Value Since The Beginning Of 2022
- Since 2022, Solana has lost approximately $50 billion in value due to outages, overloads, and exposure to Sam Bankman-FTX Fried’s exchange.
- Solana proponents say the decentralized finance platform is more important than ever, but recent price behavior reveals investors remain cautious even after crypto markets calmed.
Solana was billed as the cryptocurrency that will take on ether with a more environmentally friendly approach, better transaction speeds, and more constant pricing.
Investors that took the risk had a bad year. The token’s market cap fell from more over $55 billion in January to just over $3 billion by the end of the year. Solana’s strong association with FTX founder Sam Bankman-Fried, who faces eight criminal fraud charges after his crypto exchange went bankrupt last month, was one of the company’s main concerns in late 2022. The disgraced former crypto billionaire was one of Solana’s most vocal supporters, promoting the benefits of blockchain technology and investing more than $500 million in this coins.
When FTX failed, investors abandoned $SOL to the tune of $8 billion. But, while the rest of the crypto industry has been pretty calm and values have been constant, this token price has fallen much worse. $SOL has dropped by more than 30% in the last week. Ether has remained stable, losing 1.7% in the same time span, while bitcoin has lost 1.2%.
$SOL fell 5.8% in one hour of trade on Thursday, putting it to its lowest level since early 2021. The price has since recovered from its lows, with a market cap that now exceeds $3.5 billion. Its 24-hour trading volume has increased by more than 200% in comparison.
Over the course of 2021, Solana skyrocketed, with a single token rising 12,000% for the year and reaching $250 by November. Even before the demise of FTX, Solana faced a number of public battles that called into question the protocol’s claim to be a superior technology.
Solana lost more than 70% of its value in the weeks following FTX’s bankruptcy declaration in November. Investors abandoned anything affiliated with Bankman-Fried, with FTT (FTX’s native token), Solana, and Serum prices plummeting precipitously.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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