Despite fundamental upgrades, Solana loses 95% of its value.
Solana, formerly known as the “Ethereum killer,” has witnessed a sharp decline in price recently. Despite initiatives to strengthen its foundation, Solana’s value has decreased by 95% after hitting an all-time high of $260 in 2021. Due to this, Solana’s market position has dropped to #17 and its current estimated value is $4.14 billion.
The FTX Bankruptcy Affects Solana’s Monthly Losses
The consequences of the demise of bitcoin derivatives exchange FTX are one of the elements that have contributed to Solana’s recent difficulties. Before the exchange declared bankruptcy, Alameda Research, a subsidiary of FTX, had spent more than $3 billion in Solana projects, according to information from DefiLlama.
Exit of Major NFT Projects Increases Challenges for Solana
Several significant non-fungible tokens (NFT) projects are switching to other platforms, which is another issue Solana is dealing with. In the first part of 2023, projects like DeGods and y00ts NFT will switch to Ethereum and Polygon, respectively.
Industry professionals are upbeat about Solana’s future.
Despite the present negativity surrounding Solana, there is a rising sense of hope among specialists in the field that the cryptocurrency project will soon bounce back and do even better. Vitalik Buterin, a co-founder of Ethereum, has stated that he thinks Solana’s future is “bright” given that the less dedicated members of the team have departed the project. He views the existence of a knowledgeable and committed developer community as a promising development for Solana’s future.
It should be mentioned that Solana has internal issues such network failures long before the decline in the bitcoin market.