The once-booming altcoin Solana (SOL) could be having one of its worst years. This follows the altcoin’s fall below $10 on Wednesday, marking its worst drop in almost two years. According to data from CoinMarketCap, Solana hit a low of $9.52, revisiting levels not seen since February 2021.
Solana (SOL) plunges 96% from its high
That was moments before the start of its rapid rise to fame, which saw it jump more than 2500% over the next nine months. In November 2021, Solana (SOL) peaked at $260 a piece.
However, since hitting its all-time high in November, the altcoin has lost about 96% of its value. This is a significantly higher percentage than the value lost by leading crypto-currencies Bitcoin and Ethereum. Both have only lost about 76% of their value since reaching their respective all-time highs in the same month of November. In addition, Bitcoin and Ethereum prices are gradually finding their footing, appearing to have stabilized over the past month.
Impact of the FTX collapse
Without a doubt, it was a generally tough year for all digital assets. However, Solana’s losses were more significant, even by all ramifications. And that could be attributed to its ties to the now defunct FTX exchange. Before FTX collapsed in early November, its founder, Sam Bankman-Fried (SBF), was a strong supporter of Solana. SBF even invested heavily in both SOL and the Solana ecosystem, proving his belief in altcoin.
But when the reality of the FTX crash gradually set in, Solana took a much harder hit than most other crypto-currencies. Recall that before the FTX collapse, SOL was still trading around $37.
While SOL’s price seemed to have stabilized around $13 in early December, its most recent drop is in line with recent reports of popular blockchain NFT projects being bridged to other platforms. On Christmas Day, news broke that Solana’s DeGods and y00ts NFTs will be connected to the Ethereum and Polygon networks respectively by early 2023.