Since its last all-time high, the Solana blockchain’s SOL has fallen 96.5%, representing the erasure of more than $92 billion in capitalization. While the network was strongly supported by FTX, its future is now uncertain.
The Solana blockchain suffers the full force of the FTX scandal
While the Solana blockchain benefited greatly from the last bull market, with a SOL token going from a few dollars at most, to nearly 260 dollars at its all-time high (ATH) in barely a year, the disillusionment is strong today. And for good reason, this same asset is trading at $9.15 at the time of writing, a devaluation of 96.5%.
In terms of capitalization, this represents a little more than 92 billion dollars that have been erased.
Over the last 24 hours, the price of the asset has even gone as far as touching $8, a plateau that had been exceeded since February 2021.
In addition to the bear market affecting the entire cryptocurrency ecosystem, the Solana blockchain is particularly suffering from the mid-air explosion of the FTX masquerade. Indeed, the network has benefited from significant support from Sam Bankman-Fried throughout its growth, while the latter is now being prosecuted for stealing money from its customers.
The Solana community has been the unwilling victim of the media coverage that has followed this affair, so much so that it will take a lot of work to regain the confidence of investors.
Promising technical advances
Beyond the FTX scandal, the promises of the Solana blockchain were nevertheless interesting. This was mainly due to its new 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 Solana being dubbed the “Ethereum killer”.
Despite this, the network is also often criticized for its regular outages, which sometimes cause the blockchain to temporarily shut down.
