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Solana Turns To Ashes With A 95% Drop In A Year

Since the market collapsed after Binance (BNB) withdrew from its intended acquisition of the FTX (FTT) exchange, Solana’s SOL currency saw a loss of over half its worth in less than a day.

All three entities – FTX, FTX US, and Alameda Research, the business Sam Bankman-Fried founded as the founder of FTX—have now declared bankruptcy.

On November 14, Solana acknowledged that it would have $1 million worth of assets left on the platform after it collapsed. Even though this made up less than 1% of Solana’s assets, things were about to worsen.

In addition to 3.24 million shares of FTX, Solana held 134.54 million serum (SRM) coins and 3.43 million FTT tokens on the market as on November 6, the day that withdrawals from FTX were halted.

It’s possible that Bankman-past Fried’s endorsement of the coin contributed to SOL’s losses. As recently as August of this year, Solana was called “the most underestimated” cryptocurrency by Bankman-Fried.

But is that all? Continue reading as we delve into the different price movements for the SOL token and investigate the reason behind such a fall. Let’s get started. 

Solana (SOL): What Is It All About?

Solana is a Blockchain-based framework that provides quick transactions and inexpensive gas costs.

Like Ethereum, Solana is a decentralized blockchain that also acts as a welcoming host for cryptocurrency apps like Serum, the decentralized exchange (DEX), and Degenerate Apes Academy NFT, which is the first significant NFT project on the Solana network.

Since Solana can process up to 50,000 Transactions Per Second, compared to Ethereum’s maximum capacity of 15 TPS, the token is aptly called the “Ethereum Killer.”

Developers and financial organizations had great expectations that Solana could soon become the Visa of the cryptocurrency world thanks to its quick performance, cheap fixed costs, and network stability.

Latest Updates Over The Solana Token

SOL, the native coin of Solana, is mainly used for staking and transaction fees on the Solana Blockchain. Indeed, SOL owners can vote on further platform upgrades.

However, ever since the company’s network experienced yet another severe breakdown last month, the SOL money that Solana issued has dropped by 9% compared to the prior month. A $100 million hack was also targeted at one of its financing ways.

As a result, 63% of the experts who took part in the expert panel expressed a lack of confidence in the blockchain. The current downward trend SOL is going through is similar to the longer-term negative spiral SOL appears to be in.

Why has the price of SOL coins been declining lately? The SOL token: Will it endure? Here, we examine the most innovative developments and the greatest environmentally friendly substitutes, including IMPT, Dash 2 Trade (D2T), Calvaria (RIA), and Tamadoge (TAMA).

It is crucial to remember that Solana is a layer 1 blockchain designed to support smart contracts and serves as the basis for financial services related to cryptocurrencies. Therefore, according to Mittal, Solana and other similar blockchains will be crucial for the widespread adoption of Defi.

Price Forecasts For Solana: What’s Next For The Token?

Now let’s look at a few of the Solana price forecasts made on November 15, 2022. It’s vital to keep in mind that price predictions frequently prove to be inaccurate, particularly when considering something as risky as cryptocurrencies. In addition, many long-term cryptocurrency price forecasts are based on an algorithm subject to alteration at any time.

CoinCodex provided a somewhat negative short-term SOL price forecast. According to the website, the coin may have dropped to $13.82 by November 15 before tumbling to $7.59 on December 16. In addition, the price action for Solana on the website was unfavorable, with 20 indicators producing negative signals and 11 producing positive ones.

When predicting the price of Solana cryptocurrency, DigitalCoinPrice was upbeat. According to historical statistics, the crypto data provider’s projection for the price of Solana suggested that it may have reached $23.89 in 2023, rising from $15.01 in 2022. Furthermore, according to its forecast for Solana prices in 2030, the coin might increase to $81.33.

The forecast for the price of the Solana coin from CoinPriceForecast, too, was optimistic. By the end of 2022, the prediction indicated that the coin might trade for $23.04. According to the website’s Solana price forecast for 2025, the cost might have reached $39.25 by the close of the calendar year.

Last but not least, WalletInvestor predicted a challenging year for the cryptocurrency, with a possible dip in price to roughly $1.92 by November 15, 2023.

Will Solana Be A Gainer Once Again?

A significant hack of a lending protocol created using Solana has recently caused SOL a lot of trouble. Mango Markets, a DeFi platform, had $100 million stolen by an attacker who is now keeping it ransom unless the protocol settles its due bills.

The overall value locked (TVL) on the Solana network has dramatically lowered due to the Mango Markets breach. For instance, it decreased in value from $1.32 billion on October 10 to $862 million within three days.

After yet another network outage and this announcement, it appears that this month will be difficult for Ethereum’s main challenger. The network was down on October 1 due to a node with the wrong configuration.

Therefore, while the positive future of the SOL token is still doubtful, it’s critical to remember that cryptocurrency markets continue to be very volatile when searching for SOL coin price targets because this makes it challenging to predict a coin’s price and future movements with complete accuracy. 

Since the market is unpredictable, it can be challenging to establish a long-term target price. As a result, analysts and algorithm-based forecasts can have unrealistic expectations. Therefore, it is always wise to trust your research for any token. 

Don’t Overlook The Possibilities

Cryptocurrencies have a bright future because they can transform the world’s monetary system. Although it is reasonable to be concerned about how cryptocurrencies can affect the environment, successful cryptos that reduce this impact are secure. 

Furthermore, they offer a wide range of advantages, especially when compared to those provided by conventional digital currencies.

Without mining, buyers can use these cryptocurrencies because of their efficiency and durability. They are the best potential financial investment because of these benefits. As a result, valuations and usage of these cryptocurrencies will have risen by 2023.

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