$1 billion disappears from Solana’s market value in a week
The price of the decentralized finance (DeFi) token Solana (SOL) continues to decline due to concerns over the network’s strong association with the defunct FTX cryptocurrency exchange.
Solana is now trading at $9.17, down 3.2% on the day and an additional 22.93% over the previous week, with the SOL price falling as low as $8.14, its lowest level since February 19, 2021.
The quick price loss has been exacerbated by the arrest of Sam Bankman-Fried, the creator of FTX, with SOL’s market value plunging from $4.36 billion to $3.36 billion in the last week.
The machine learning-based algorithms at PricePredictions predict that Solana will likely trade at $11.76 on January 1, 2023, despite the pessimistic technical analysis.
Elsewhere, Vitalik Buterin, co-founder of Ethereum, addressed Solana’s possibly bright future. After what many have called to as “terrible opportunistic money people” have been eliminated from the blockchain, Buterin remarked that he believes the Solana community will have the chance to develop.
The business has a promising future now that the nasty opportunistic money people have been swept away, and there is a sincere clever development community in Solana, according to several wise individuals. It’s difficult for me to say from the outside, but I hope the community has a chance to flourish.
As the fallout from FTX proceeds, it seems that the asset’s hopes of being an “Ethereum (ETH) killer” have been crushed. After what transpired with the cryptocurrency trade, people’s faith in Solana’s future has diminished dramatically.
Investors are still attempting to ascertain if the intimate relationship between the two parties threatens Solana’s future. Notable is the fact that Bankman-Fried and FTX gave a substantial amount of help to the Solana team during the height of operations.
Raj Gokal, a co-founder of Solana, has stated that the ecosystem is unconcerned with the price movement of SOL, stating that the future seems promising.
“We’ve always received really unfavorable criticism about FTX’s ecosystem participation and ownership concentration,” Gokal remarked.