Solana (SOL) Fell Below $10, Marks Two Years Low

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Yesterday, bears drove the price of Solana SOL to its lowest point in over two years. For the first time since February 18, 2021, the price of SOL fell under the $10 mark.

SOLUSDT 2022 12 30 04 50 08
Source: Tradingview

SOL marked the lowest at $8.17 yesterday afternoon. It lost more than 10% of its value and fell below the $10 threshold, but following tweets from Ethereum’s CEO in support, it has somewhat recovered. Vitalik Buterin said that Solana has “a bright future.”

Some smart people tell me there is an earnest smart developer community in Solana, and now that the awful opportunistic money people have been washed out, the chain has a bright future.Hard for me to tell from outside, but I hope the community gets its fair chance to thrive??

According to thedatafrom Coinmarketcap, SOL is currently trading at $9.16, with 4% in the last 24 hours and 22.89% over the past seven days, while its 24 hours trading volume is boosted by over 180%.

Source: CoinMarketcap

Due to their strong ties to disgraced FTX creator Sam Bankman-Fried, who is accused of fraud and misappropriating customer cash, the tokens came under selling pressure.

The token has lost a staggering 95% of its value since reaching a high of $179.44 in January, after dropping 56.6% of its value in November and falling29.0%so far this month.

Moreover, CoinMarketcap’s data shows that the total crypto market cap lost momentum from $800 billion in the last 24 hours. It’s now $792.12 billion. Whereas the second largest cryptocurrency, Ethereum (ETH), also fell from its spot level yesterday and is currently trading below the $1,200 mark.

ETHUSDT 2022 12 30 05 08 55
Source: Tradingview

Solana DeFi Hit Hardest By FTX Collapse

According to the recent researchreportby Messari, The subsector most severely impacted by FTX’s collapse was Solana DeFi. The elimination of Alameda’s on-chain activities and the 67% drop in SOL’s pricing had a significant negative impact on TVL across Solana DeFi.

DefiLlama data reveals that, aside from price, the value locked on Solana-based applications has decreased 98% since November of last year.

Source: Messari

However, after the collapse of the Terra network in May, a market-wide decline in July, and the discovery of Bankman-FTX Fried’s issues early last month, Solana’s metrics experienced sharp drops.

Ecosystem flight has been a common theme in discussions among Solana developers. A recent poll founds that most developers (66% of those surveyed) prefer to only use Solana.

image 60
Source: Messari

According to 72% of developers, FTX had no impact at all on their team. 20% or so invested money from personal or project accounts on FTX.

Additionally, the report asserts that despite dealing with troubling times yet, there is potential in the Solana ecosystem:

New apps may re-catalyze usage. Potential new champions can surpass SBF in terms of positive contribution to the network. Technical upgrades actively in development will likely continue to mitigate network issues and upgrade network performance.

Related Reading |FTX Ex-CEO’s Meetings With White House Aides Before Collapse


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