Since its last all-time high, the SOL of the Solana blockchain has fallen by 96.5%, which represents the erasure of more than $92 billion in market capitalization. While the network was heavily backed by FTX, its future is now uncertain.
The Solana blockchain bears the brunt of the FTX scandal
While the Solana blockchain benefited greatly from the last bull market, with a SOL token going from a few dollars to more, near $260 at its all-time high (ATH) in barely a year, disillusion is strong today. And for good reason, this same asset is trading at 9.15 dollars at the time of writing, i.e. a devaluation of 96.5% around :
Fall in the price of SOL from its ATH
In terms of capitalization, this represents a little more than 92 billion dollars that have been erased.
Over the past 24 hours, the price of the asset has even gone so far as to touch 8 dollars, a level which had however been exceeded since February 2021.
In addition to the bear market which affects the entire cryptocurrency ecosystem, Solana Blockchain Particularly Suffers from FTX Masquerade Mid-Flight Explosion. Indeed, the network has benefited from significant support from Sam Bankman-Fried throughout its growth, while the latter is now being prosecuted for stealing his clients’ money.
The Solana community has thus borne the brunt, despite itself, of the media coverage that followed this case, to such an extent that it will take a lot of work to regain investor confidence.
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Promising technical advances
Beyond the FTX scandal, the promises of the Solana blockchain were nevertheless interesting. This was due in particular to its unique consensus mechanism, the Proof of History (PoH), which allowed it to offer remarkable speed for extremely low transaction costs. These elements have even contributed to nickname Solana “of Ethereum killer”.
Despite everything, the network is also often criticized for regular breakdownswhich sometimes cause the blockchain to stop temporarily.
For his part, Vitalik Buterin, the founder of Ethereum, expressed his support for the Solana community in a tweet posted last night:
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🦾🦾
— vitalik.eth (@VitalikButerin) December 29, 2022
In this tweet, he explains that several people believe that now that FTX’s dirty money has been washed away, the community of serious developers building the network is poised to move forward. Vitalik Buterin continues with encouragement:
“It’s hard for me to talk about it from the outside, but I hope the community will have a chance to prosper. »
As is the case with a multitude of projects during this market phase, Solana’s future remains uncertain. But if the actors who build the network manage to overcome this pitfall, nothing prevents this blockchain from returning to the front of the stage one day or another.
👉 Also in the news – Liquid, a Japanese subsidiary of FTX, is set to reimburse its injured customers
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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