This year, a wide range of assets saw severe revisions. Unquestionably, Solana [SOL] was one among them. SOL experienced a 94 percent year-to-date [YTD] decline, compared to a 60–70% decline for the majority of crypto assets. SOL became one of the greatest losers of the year as a result of this.
Arthur Hayes, a co-founder of the cryptocurrency exchange BitMEX, further commented on the matter by calling SOL a “shitcoin.” Hayes tweeted in response to a recent Bloomberg report,
It appears that Hayes wasn’t the only person to call Solana a “shitcoin.” SOL and SOL-U dual currency products will be taken from Matrixport, Jihan Wu’s asset management platform. According to reports, these assets will leave the platform on December 30, 2022.
Matrixport became the first platform to introduce a Solana dual currency offering earlier this year, in June. The platform has since said that it won’t be releasing any more Solana goods in the future.
FTX Disrupted Solana’s High Streak
Since its release, Solana has been the topic of the cryptocurrency community. The network received praise for its quick transactions and inexpensive costs. Many chose the item and thought it was a wise investment. But FTX ended the asset’s winning streak.
Solana was hurt by the FTX and Alameda-caused crash that destroyed the cryptocurrency markets. After the FTX crisis, SOL lost more than 60% of its value in less than three days, dropping from $39 to $12.
Projects on the Solana blockchain severed ties with Serum as soon as FTX filed for Chapter 11 bankruptcy. After the FTX failure, the developers and other interested parties were concerned that users’ private keys on Serum might have been compromised. The central limit order book for Solana operates through an automated market system.
SOL was on a downward spiral, as shown in the graphic below. The asset dropped to a low of $9.52 earlier today from a high of $179.43 at the beginning of the year.
According to Hayes, the asset is about to decline. Hayes predicted that SOL would fall to a low of $3 back in November 2022. He stated,
“Crypto OG diamond hands are waiting for lower levels and will step in to further increase their stacks.