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Since reaching its all-time high back in November, Solana has shed approximately 96% of its value.
The once-booming alternative coin Solana (SOL), may be having one of its worst years yet. This follows after the altcoin plunged below the $10 mark on Wednesday, marking its worst downturn in almost two years. According to data from CoinMarketCap, Solana hit a low of $9.52, revisiting levels not seen since February 2021.
Solana (SOL) Plunges 96% From ATH
That was moments before it began its quick rise to fame that saw it surge by above 2500% over the next nine months. By November 2021, Solana (SOL) peaked at $260 per coin.
However, since reaching its all-time high back in November, the altcoin has shed approximately 96% of its value. That is a significantly higher percentage when compared to the value lost by leading cryptocurrencies Bitcoin (BTC) and Ethereum (ETH). Both have only lost about 76% of their values since hitting their respective all-time highs in the same November. Besides, the prices of Bitcoin and Ethereum are gradually finding their rhythm, appearing to have stabilized over the past month.
Impact of FTX Collapse
Without a doubt, it has been a generally tough year for all digital assets. However, Solana’s losses have been more, even by all ramifications. And this could be attributed to its links with the now-defunct FTX exchange. Before the collapse of FTX in early November, its founder Sam Bankman-Fried (SBF) was a vocal supporter of Solana. SBF even invested heavily in both SOL and the Solana ecosystem, further proving his conviction about the altcoin.
But as the reality of the crash of FTX gradually set in, Solana took a much harder hit than most other cryptocurrencies. Recall that prior to the FTX collapse, SOL was still trading around $37.
While SOL’S price appeared to have stabilized around $13 in early December, its most recent drop is in line with recent reports about bridging the blockchain’s popular NFT projects to other platforms. On Christmas day, news broke that Solana’s DeGods and y00ts NFT will be bridged to Ethereum and Polygon networks respectively by early 2023.