For the First Time in Almost Two Years, Solana Drops Below $10

Key Ideas:

• Even though the prices of well-known cryptocurrencies like Bitcoin and Ethereum have been stable over the past month, Solana has kept losing value. Early this morning, the once-rising altcoin fell below the $10 mark for the first time in two years.
• The two companies Sam Bankman-Fried founded, FTX and Alameda Research, were a crucial trigger for Solana's recent rapid bleeding (SBF).
• At the beginning of December, when the coin was worth about $13, Solana's losses were rather stable, but over the past two weeks, it has lost a significant amount of value.

Even though the prices of well-known cryptocurrencies like Bitcoin and Ethereum have been stable over the past month, Solana has kept losing value. Early this morning, the once-rising altcoin fell below the $10 mark for the first time in two years.

Solana (SOL) reportedly hit a recent low of $9.90 early on Wednesday, Nevertheless, as of the time of this writing, it has partly rebounded to $10. Solana last sold for less than $10 in February 2021, when the cryptocurrency began to rise.

Six months later, Solana's price skyrocketed, beginning a sharp increase in value that would reach a peak of nearly $260 per coin in November 2021. While Bitcoin and Ethereum both fell about 76% from their respective all-time highs in the same month, Solana has since lost about 96% of its worth.

The collapse of FTX and Alameda Research, the two companies Sam Bankman-Fried founded, was a major driver for Solana's recent rapid hemorrhaging (SBF). The previous millionaire was a fervent supporter of Solana and had made large investments in SOL and the surrounding environment.

Due to its intimate ties to SBF and related enterprises, the layer-1 blockchain platform's coin was affected by the early November collapse of the FTX empire much more severely than most prominent cryptocurrencies.

After FTX's Demise, SOL Had a Value of More Than $37

At the beginning of December, when the coin was worth about $13, Solana's losses were rather stable, but over the past two weeks, it has lost a significant amount of value. SOL's price has dropped 8% today, 19% last week, and 29% over the last 30 days. In reality, while Ethereum has declined by 0.01% over the past 30 days, Bitcoin has grown by 1%.

Solana's recent collapse came as little surprise after learning on December 25 that two of the blockchain platform's most popular and profitable NFT projects, DeGods and y00ts, will be bridged to other platforms in early 2023 in an effort to make them more accessible to a wider audience.

By employing DeGods' bridge to Ethereum, users can transfer their funds to the leading NFT and decentralized app platform (dapps). Funding from Polygon Studios will aid in the migration of y00ts, an Ethereum scaling network, to Polygon. Additionally, the associated DUST coin will be connected to Ethereum and Polygon.