The last month saw the prices of top crypto assets, such as Bitcoin and Ethereum, remain rather stable, but Solana continued to lose during this time.
On December 28th, the once-soaring altcoin saw its price drop below the $10 mark, which is the first thing this has happened in the last two years.
Early on Wednesday, Solana (SOL) dropped to a low of $9.90, but data from CoinGecko showed that the token had rebounded slightly to continue trading at $10.
The last time that Solana had seen its price drop below $10 was in February last year, just as the crypto was beginning its climb.
It took just six months for the SOL token to soar and it saw a massive rise in value that put it at $260 per token last year in November.
That was when the entire crypto market climbed to its peak. Since then, Solana has seen its value plunge by almost 96%, while Bitcoin and Ethereum have shed about 76% from their respective all-time highs that they hit in the same month.
The market situation
The last several weeks have seen Solana’s drop accelerate and this was primarily due to the collapse of Alameda Research and the FTX crypto exchange, the two firms that Sam Bankman-Fried had founded.
The now disgraced-crypto mogul had been one of Solana’s most vocal supporters and had also invested significantly in the Solana ecosystem as well as the SOL token.
A liquidity crunch saw the FTX empire implode back in November and the token of the layer-1 blockchain platform was delivered a much harder blow than other cryptocurrencies in the market.
This was mostly because of its close association with Bankman-Fried and his companies. In the days that led up to the downfall of FTX, the price of the SOL token had been around $37.
In early December, Solana was able to stabilize some of its losses and its price had reached the $13 mark, but the last two weeks again saw the token shed a lot of value.
On Wednesday, SOL was down by 8%, while its weekly losses were around 19% and monthly losses stood at 29%. In comparison, Bitcoin had actually gone up by 1% in a month.
The latest decline of Solana came after an announcement on December 25th. It disclosed that two of the most popular NFT (non-fungible token) projects of the blockchain platform would be bridged to other platforms.
Early 2023 will see both yoots and DeGods get bridged to other platforms in order to give more audience access to these projects.
The former will be bridged to Polygon, which is an Ethereum scaling network, while the latter will be bridged to Ethereum, which means users will be able to transfer their assets for dApps and NFTs.
As far as the DUST token is concerned, it will be bridged to both Polygon and Ethereum. This news has also taken its toll on Solana.