Sam Bankman-Fried-Backed Solana Nosedives 94%, is currently trading in the low single digits

KEY POINTS

  • Solana hit an all-time high of $258.78 on November 6, 2021
  • In the summer of 2022, Bankman-Fried called Solana the most underrated cryptocurrency
  • Solana was trading down 9.70% at $9.72 as of 11:09 p.m. ET on Wednesday.

The chaos that Sam Bankman-Fried and his crypto empire brought to the crypto space continues to wreak havoc even after sending several companies to file for bankruptcy. Now, Solana – the token heavily backed by the founder of FTX – has fallen 94%, and after trading in triple digits for the past year, is currently trading in single digits.

Solana (SOL) hit a fresh low on Wednesday when it traded below $10, a price the token first saw when it was just trying to move higher in February 2021.

Early Wednesday, Solana traded $9.90 and continues to bleed as big traders and whales now attempt to dump the token after losing hope of a price rebound anytime soon.

But what happened to Solana, which was once considered a viable rival to Ethereum, the second most popular and largest crypto by market capitalization?

Martin Lee, data analyst at Nansen, thinks market confidence in Solana’s future may have been affected by its close association with Bankman-Fried.

The recent price crash came after major crypto projects bailed out on the Solana ecosystem, with top NFT collections DeGods leaving for Ethereum and Y00ts for Polygon.

“General confidence in Solana’s future has taken a hit given her close connection to SBF,” Lee told Bloomberg.

While technical issues are a common concern among skeptics, the biggest cloud over Solana’s future is the epic fall from grace of her lead attorney, Bankman-Fried.

Solana Labs raised $314.2 million last year and received significant backing from Alameda Research, a hedge fund and crypto trading firm founded by Bankman-Fried.

Later in 2021, Bankman-Fried started building Serum, a decentralized exchange that uses Solana Blockchain. In the summer of 2022, Bankman-Fried called Solana the most underrated cryptocurrency, seemingly endorsing the token.

But, speculation aside, the numbers don’t lie and a closer look at Solana’s performance since FTX’s disgraceful collapse speaks volumes. SOL crashed 70% following the collapse of FTX and has lost 94% of its value since the start of the year.

While it’s safe to say that all other major assets like Bitcoin and Ethereum have fallen this year, compared to Solana, BTC and ETH have plunged 76% from their respective highs, while SOL has lost 96% of its record value.

From an all-time high of $258.78 on November 6, 2021, SOL’s value has been reduced to less than $10.

As of 11:09 p.m. ET on Wednesday, Solana was trading down 9.70% at $9.72 with a 24-hour volume of $490,935,202, according to the latest data from CoinMarketCap.

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