2 - 3 minute read
Solana, once considered a strong contender in the world of cryptocurrencies, has continued its downward spiral, losing another 16% in value over the past 24 hours. This drop has caused SOL, the token behind the Solana network, to fall out of the top 20 cryptocurrencies by market cap.
SOL’s price has not been this low since February 2021 and has lost an astounding 97% of its value since peaking in November 2021. The coin, which powers the layer-1 blockchain platform, has fallen a further 17% today, making it the only coin in the top 100 to post a double-digit percentage loss.
The decline in Solana’s price has resulted in a market cap of just over $3 billion, causing it to fall to the 22nd spot on CoinGecko’s market tracker. In November 2021, Solana’s market cap peaked at over $76 billion, and the coin was ranked in the top 10.
The drop in value is likely due to a combination of factors, including the downfall of FTX and Alameda Research, both of which had invested heavily in SOL and the Solana ecosystem. The close association with these companies and their co-founder, Sam Bankman-Fried, appeared to take a toll on Solana following FTX’s collapse in November.
Solana has also faced technical challenges this year, with multiple periods of network downtime and controversy surrounding its use of a proof-of-stake consensus mechanism. Despite these setbacks, Solana has remained a popular choice for decentralized finance (DeFi) projects and has seen an increase in the number of transactions on its network.
The Solana community remains optimistic about the future of the project, with the upcoming Breakpoint event expected to showcase new developments and partnerships. However, it remains to be seen if Solana will be able to bounce back from its current position and regain its former standing in the cryptocurrency market.
