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Solana Loses 94% of Value Since Start of 2022 Due to Association with SBF and FTX

The layer-1 blockchain network has recently suffered a significant decline in value.
| Cryptopress
Last updated: December 31, 2022

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Solana is a layer-1 blockchain network that is not controlled by a central authority and runs on its own cryptocurrency, SOL. It aims to give decentralized applications and blockchain-based projects infrastructure that is fast, safe, and scalable. Anatoly Yakovenko started Solana in 2017. Since then, it has become a popular choice among developers who want to build on a reliable and fast blockchain platform.

Even though SOL is popular and is being used more and more, its value has gone down a lot in the past few months. Since the beginning of 2022, the value of SOL has plummeted, shedding a staggering 94% of its value. 

The FTX debacle

People think that Solana’s close relationship with SBF, a former billionaire who was a vocal supporter of the platform and had put a lot of money into both the platform and its cryptocurrency, is a big part of why it fell so quickly.

Early in November, the FTX empire ran out of money, which caused the value of SOL to drop by a lot. Because of how close Solana and SBF are to each other and how much SBF and his companies invested, the coin probably had a rougher landing than other top cryptocurrencies. Prior to FTX’s collapse, SOL was valued at over $37.

Although Solana’s losses stabilized in early December, with the coin’s price hovering around the $13 mark, it has continued to decline in value over the past two weeks, falling 8% today, 19% over the past week, and 29% over the past 30 days. 

Solana’s value dropped again after it was announced on December 25 that two of the platform’s most popular and valuable NFT projects, DeGods and y00ts, will be connected to other platforms in early 2023 so that they can reach more people. It is unclear how this news will impact the value of SOL in the long term.

© 2022 Cryptopress. For informational purposes only, not offered as advice of any kind.

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