Key Points:

  • Solana has continued to lose value even though the prices of popular cryptocurrencies like Bitcoin and Ethereum have remained constant over the past month. The once-rising altcoin dropped below the $10 threshold early this morning, the first time in two years.

  • FTX and Alameda Research, the two businesses Sam Bankman-Fried created, served as a significant catalyst for Solana’s rapid hemorrhage during the previous few weeks (SBF).

  • Solana’s losses steadied towards the beginning of December when the coin’s worth was roughly $13, but it has lost a lot of value during the last two weeks.

Solana has continued to lose value even though the prices of popular cryptocurrencies like Bitcoin and Ethereum have remained constant over the past month. The once-rising altcoin dropped below the $10 threshold early this morning, the first time in two years.

According to data from CoinCu, Solana (SOL) struck a recent low of $9.90 early on Wednesday. However, as of this writing, it has somewhat recovered to an even $10. When the cryptocurrency started its climb in February 2021, Solana last traded for less than $10.

Six months later, the price of Solana surged, starting a rapid ascent in value that would culminate in a high of about $260 per coin in November 2021. Since then, Solana has lost around 96% of its value, while Bitcoin and Ethereum have fallen by 76% from their respective all-time highs in the same month.

The demise of FTX and Alameda Research, the two businesses Sam Bankman-Fried created, served as a significant catalyst for Solana’s rapid hemorrhage during the previous few weeks (SBF). The former billionaire had made significant investments in SOL and the Solana ecosystem and was a passionate booster of Solana.

The layer-1 blockchain platform’s coin was impacted significantly harder than most popular cryptocurrencies after the early November collapse of the FTX empire due to its close ties to SBF and its businesses.

FTX’s collapse, SOL was worth more than $37

Solana’s losses steadied towards the beginning of December when the coin’s worth was roughly $13, but it has lost a lot of value during the last two weeks. The price of SOL has decreased by 8% today, 19% in the past week, and 29% in the past 30 days. The truth is that over the last 30 days, Bitcoin has increased by 1% while Ethereum has decreased by 0.01%.

It's just the beginning. pic.twitter.com/F3vxzXQAOy

— Frank III (@frankdegods)    December 25, 2022   

After learning on December 25 that two of the blockchain platform’s most well-known and valuable NFT projects, DeGods and y00ts, will be bridged to other platforms in early 2023 in an effort to make them more accessible to a broader audience, Solana’s recent decline came as no surprise.

Users can move their assets to the top NFT and decentralized app platform using DeGods’ bridge to Ethereum (dapps). Funding from Polygon Studios will help to facilitate the transition from y00ts to Polygon, an Ethereum scaling network. The related DUST coin will also be bridged to Polygon and Ethereum.