- Solana’s (SOL) resources were closely intertwined with the fallen FTX.
- YouTuber David Gokhshtein claims Solana “is not going to make it.”
- The ongoing bearish trend resulted in many developers leaving SOL.
Solana (SOL) is arguably one of the hardest hit by the crypto earthquake triggered by the corrupt Sam Bankman-Fried and his now insolvent FTX exchange. The altcoin was one of the fastest-rising crypto gems in 2021 and managed to stay in the TOP 10 even after the Terra (LUNA) and Terra (UST) depegging wiped over $60 billion from the sector. However, things are not looking great for the altcoin’s future, as noted by popular crypto influencer and entrepreneur David Gokhshtein.
Unpopular opinion; but Solana is dead.— David Gokhshtein (@davidgokhshtein) December 27, 2022
They should focus on building hardware.
Solana Falls Victim to FTX Fiasco
The severely damaged SOL plunged from around $35 all the way to the key support level of $15 as SBF’s ship sunk, also sending the American crypto platform’s native FTX (FTT) token down the tubes. However, it’s double trouble for SOL, as the Ethereum (ETH) competitor not only dropped out of the TOP 10 but continued to fall ever since the bankrupt Alameda Research unceremoniously dumped their share of the altcoin.
However, the disgraced FTX founder and his scatterbrained girlfriend, Caroline Ellison, are not exclusively to blame for SOL’s hardships. Indeed, there are multiple bearish signals for the 19th-ranked altcoin. For instance, plunging transaction volume indicates a lack of interest from the builders, but that’s far from it.
SOL’s total market capitalization has shrunk by more than ten times since the beginning of 2022. It peaked at $55bn on 2nd January 2022 but stands at just $3.69bn at the time of publication.
Legit every single stat about Solana is pointing down, this won't end well. pic.twitter.com/BNbdtLrEtb— Draco (@covertheflames) December 28, 2022
The ‘Ethereum Killer’ is Back to Single Digits
At press time, the original “Ethereum Killer” is priced at $9.99, according to CoinGecko. The alternative cryptocurrency, and the second-largest home for NFT enthusiasts, dropped to single digits for the first time in two years.
Indeed, the merciless bears of the prolonged crypto winter have been pulverizing SOL all-year round. As a result, its market value had been following a protracted descent and had to give way to competing altcoins like the OG Litecoin (LTC), the two-year-old memecoin Shiba Inu (SHIB), and Justin Sun’s Tron (TRX). Ultimately, with SOL falling below the key resistance levels, many crypto analysts believe that its troubles are far from over.
$SOL entered to Single Digit— Aditya Siddhartha Roy❁ (@Adityaroypspk) December 28, 2022
•6.4$-4.5$ Incoming #Solana #SOL $BTC #Crypto $ETH pic.twitter.com/DlCgfzrI4s
On the Flipside
- Solana (SOL) is one of the top choices for institutional investors.
- SOL is also one of the most widely covered cryptos by mass media.
- The largest Solana-based marketplace, Magic Eden, is expanding.
Why You Should Care
Solana (SOL) was one of the most prominent alternative cryptocurrencies in 2021. Founder Anatoly Yakovenko and his partners attracted the attention of institutional investors. On top of that, the Solana Foundation opened the first-ever physical Web3 headquarters. “Solana Spaces” is located in Hudson Yards, New York, and aims to educate people about blockchain technology.