Since its all-time high, the SOL of the Solana blockchain has dropped 96.5%, representing a wipeout of over $92 billion in market capitalization. Although the network was strongly supported by FTX, its future is now uncertain.
The Solana blockchain is the largest on the FTX scandal
Although the Solana blockchain was heavily affected by the last bull market, with the SOL token going from a few dollars to more, nearly $260 at an 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, ie 96.5% devaluation around:
A fall in the price of SOL from its ATH
In capitalization terms, this represents slightly more than 92 billion dollars that have been destroyed.
In the last 24 hours, the price of the asset has even gone to touch 8 dollars, a level which has been exceeded since February 2021, however.
In addition to the bear market affecting the entire cryptocurrency ecosystem, Solana Blockchain Suffers in particular from FTX Masquerade Mid-Flight explosion. In fact, the network benefited from significant support from Sam Bankman-Fried during its growth, and the latter is now being prosecuted for stealing his clients’ money.
So it is the community of Solana who have suffered the pressure, despite themselves, from the media coverage that has followed this case, to the extent that it will take a lot of work to regain investor confidence.
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Promising technical progress
Beyond the FTX scandal, The promises of the Solana blockchain were interesting nonetheless. This was mainly due to its unique consensus mechanism, the Proof of History (PoH), which allowed it to offer significant speed for very low transaction costs. These features even earned Solana the nickname “of Ethereum killer”.
Despite everything, the network is also often criticized for frequent breakdownscausing the blockchain to sometimes stop temporarily.
For his part, Vitalik Buterin, the founder of Ethereum, showed his support for the Solana community in a tweet posted last night:
Some smart people tell me that there is a real smart developer community in Solana, and now that the horrible opportunistic money people have been washed away, the chain has a bright future.
It’s hard for me to tell from the outside, but I hope the community gets a fair chance to succeed🦾🦾
— vitalik.eth (@VitalikButerin) December 29, 2022
In this tweet, he explains that some people believe that now that FTX’s dirty money has been washed away, the community of serious developers building the network is about to take off. Vitalik Buterin continues to inspire:
“It’s hard for me to talk about it from the outside, but I hope the community will have a chance to succeed. »
As with many projects during this market phase, Solana’s future remains uncertain. But if the actors who build the network manage to overcome this problem, 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 ready to refund its injured customers
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