2022-12-30
Bear market is in, cryptocurrency market value has dropped as much as 70%. Among all cryptocurrency, Solana has lost its value more than most of the cryptocurrencies. As of December 30, 2022 Solana price is $9.54 per token. Drop from its all-time high at the price of $258.
The first negative factor is frequent network outages, Solana network has shut down 7 times since its inception in 2020, with five of those showdowns occurred in 2022.
The second factor is the hackers exploit network vulnerabilities. On February 2022, A hacker stole $320 million from Solana and Ethereum bridge wormhole. Wormhole helps users transfer cryptoassets between Solana, Ethereum and other blockchain networks.
The third factor has the biggest impact. Sam Bankman-Fried invested in SOL and supported Solana ecosystem through FTX and Alameda research. Both FTX and Alameda Research went bankrupt, this event has made Solana lose credibility.
More bad news follow. On December 25, 2022, DeGods and y00ts popular Solana NFT projects plan to migrate to other blockchains. Currently, market capitalization of Solana is on par with Avalanche.
