Cryptocurrency Solana plummeted by 97% in December

The Solana cryptocurrency, nicknamed the «Ethereum killer,» continues its rapid decline. Over the past day alone, the token’s price has dropped by 17%. According to CoinGecko, the coin has fallen out of the top 20 cryptocurrencies with the largest market capitalization.

Yesterday, the SOL token was trading for $ 8.17, which is the lowest price since February 2021. On Wednesday, the cryptocurrency fell below the $ 10 support level for the first time in a month, so the rate only showed regression. Over the past week, Solana’s rate fell by 32%, and in 14 days — by 41%. In total, the token has lost almost 97% of its value — in November 2021, the asset was trading for an average of $ 260, and at the time of writing, on December 30, it was $ 9.34.

Market experts say that the prerequisite for Solana’s collapse was the bankruptcy of FTX and Alameda Research. Both firms had invested heavily in SOL and the Solana blockchain, and Сем Бенкман-Фрід" href="https://noworries.media/biography/sem-benkman-frid/" data-bio-id="3697">Sam Bankman-Fried showed high loyalty to Anatoly Yakovenko’s crypto ecosystem.

the year 2022 also brought a lot of technical problems to Yakovenko’s blockchain, as the «ETH killer» suffered from partial or complete outages. In November, the German cloud hosting service Hetzner restricted access to servers with Solana blockchain nodes. And this week it became known that two of the most popular Solana NFT projects, DeGods and y00ts, are switching to the Ethereum and Polygon blockchains.

The Solana network tokens Serum (SRM) and Solend (SLND) have also fallen sharply today. At the time of writing, SRM is trading at $ 0.2444 and SLND at $ 0.383 175.

As a reminder, the artificial intelligence algorithm predicted the price of Solana (SOL) for today, December 31. According to PricePredictions, the token will trade for $ 12.81 by the end of this year.