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- The value of Solana has fallen below $10 for the first time in almost two years.
- The coin reached an all-time high of $259.96 in November 2021, but has since been impacted by the collapse of exchange FTX and the migration of top NFT collections to Ethereum and Polygon.
- Solana has also faced an exploit that drained funds from users’ wallets and a controversial governance proposal to take over the DeFi lending protocol’s largest wallet.
In almost two years, the value of the altcoin Solana (SOL) has fallen below the $10 mark. According to the data from CoinGecko, SOL is currently down by 11% and is trading at 9.74%, as of writing.
It was in February 2021– when the crypto bull market was just starting–when SOL was trading at $10. In November of that same year, the cryptocurrency reached its all-time high trading at $259.96–around the same time the largest cryptocurrency by market capitalization Bitcoin reached its peak value of $69,044.77.
The decrease in value of the once-surging altcoin was partly triggered by the collapse of FTX–which happened after a significant hole in its balance sheet was revealed by crypto publication Coindesk. The former CEO and founder of the now-bankrupt exchange, Sam Bankman-Fried, was a supporter of Solana and had invested in both the coin and its ecosystem.
Aside from the FTX crash, also a factor of the SOL decline was the recent migration announcement of the two top non-fungible token (NFT) collections on the platform to Ethereum and Polygon. DeGods will be moving to Ethereum, and y00ts will be moving to Polygon in the early first quarter of 2023. (Read more: Top Solana NFT Collections to Set Foot in Ethereum, Polygon by 2023)
Last August, the Solana Ecosystem faced an exploit where several users reported that their funds have been drained without their knowledge through their Solana-based wallets including Phantom, Slope, and Trust Wallet. (Read more: Filipino Solana Developer Explains How the Phantom Wallet Hack May Have Occurred)
In June, Solana had a controversial governance proposal to take over the DeFi lending protocol’s largest wallet. After a day, the users of the Solana-based borrowing and lending service conducted a second voting and passed the governance proposal SLND2 that invalidates the controversial “emergency power” proposal. (Read more: Solana DeFi App Votes Again to Stop Whale Account Takeover)
This article is published on BitPinas: Solana Sinks Below $10 for First Time in Nearly Two Years
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.