Solana is a cryptocurrency that was backed by FTX’s former CEO, Sam Bankman Fried. It is among the leading layer 01 blockchain projects, and it has barely managed to survive the FTX collapse incident.
However, other major cryptocurrencies like Bitcoin and Ethereum have remained relatively stable. On the other hand, the prices of Solana have consistently dropped.
At present, SOL stands at a 97% decline from its last ATH. However, the Solana network was able to make a little recovery after getting a shout-out from Ethereum co-founder Vitalik Buterin.
In a tweet, Buterin claimed that Solana native currency had a bright future despite the massive price outages and mass spread of the FUD within the SOL community holders.
Solana Suffers due to Its Association with FTX
Solana has managed to rank among the top cryptocurrencies on the market. However, during the last year, it has dropped down to the worst-performing currencies of 2022.
It is important to note that Solana has touted itself as the next Ethereum killer on several occasions. However, its association with the infamous exchange FTX proved to be the straw that broke the camel’s back.
At press time, SOL is trading at $9.6 and has dropped 22.4% in the last week while showing a negative retracement of 34.6% during the last 14 days.
In comparison, the per unit price of SOL reached as high as $259.9 during the Bull Run of November 2021. The current market cap of Solana stands at $3.5 billion and ranks the 17th largest crypto after a 94.7% crash in 2022.
Talking about the recent price retracement of Solana, Buterin claimed that the short-term and greedy traders had been washed out.
He further exclaimed that it is now time for honest developers to participate in the Solana network. He also mentioned the earnest, smart devs community persisting within Solana users.
At present, it is clear that Solana needs to address some visible issues, such as frequent outages. However, it seems that Solana devs are regrouping.
To this end, the Solana community has also announced a Web3 project named Saga. Buterin added in his tweet that he could not talk about the state of the community observing from outside, but hopefully, it may recover.