Yesterday, bears drove the price of Solana SOL to its lowest point in over two years. For the first time since February 18, 2021, the price of SOL fell under the $10 mark.
SOL marked the lowest at $8.17 yesterday afternoon. It lost more than 10% of its value and fell below the $10 threshold, but following tweets from Ethereum’s CEO in support, it has somewhat recovered. Vitalik Buterin said that Solana has “a bright future.”
According to the data from Coinmarketcap, SOL is currently trading at $9.16, with 4% in the last 24 hours and 22.89% over the past seven days, while its 24 hours trading volume is boosted by over 180%.
Due to their strong ties to disgraced FTX creator Sam Bankman-Fried, who is accused of fraud and misappropriating customer cash, the tokens came under selling pressure.
The token has lost a staggering 95% of its value since reaching a high of $179.44 in January, after dropping 56.6% of its value in November and falling 29.0% so far this month.
Moreover, CoinMarketcap’s data shows that the total crypto market cap lost momentum from $800 billion in the last 24 hours. It’s now $792.12 billion. Whereas the second largest cryptocurrency, Ethereum (ETH), also fell from its spot level yesterday and is currently trading below the $1,200 mark.
Solana DeFi Hit Hardest By FTX Collapse
According to the recent research report by Messari, The subsector most severely impacted by FTX’s collapse was Solana DeFi. The elimination of Alameda’s on-chain activities and the 67% drop in SOL’s pricing had a significant negative impact on TVL across Solana DeFi.
DefiLlama data reveals that, aside from price, the value locked on Solana-based applications has decreased 98% since November of last year.
However, after the collapse of the Terra network in May, a market-wide decline in July, and the discovery of Bankman-FTX Fried’s issues early last month, Solana’s metrics experienced sharp drops.
Ecosystem flight has been a common theme in discussions among Solana developers. A recent poll founds that most developers (66% of those surveyed) prefer to only use Solana.
According to 72% of developers, FTX had no impact at all on their team. 20% or so invested money from personal or project accounts on FTX.
Additionally, the report asserts that despite dealing with troubling times yet, there is potential in the Solana ecosystem:
New apps may re-catalyze usage. Potential new champions can surpass SBF in terms of positive contribution to the network. Technical upgrades actively in development will likely continue to mitigate network issues and upgrade network performance.
Related Reading | FTX Ex-CEO’s Meetings With White House Aides Before Collapse