Bond Yields, as well as regulatory uncertainty, are also the reasons behind the bearishness.Īdditionally, Solana’s outages could negatively impact its price. Another reason for Solana’s price drop is the overall bear market. As a result, Solana was affected by the crash more than most other cryptocurrencies. Solana has direct financial ties with Sam Bankman-Fried, the CEO of FTX. One of the main reasons why Solana crashed is the crash of the cryptocurrency exchange FTX. Why did Solana crash, and how low will SOL go? This announcement caused major exchanges to liquidate their Solana holdings. However, on June 11, 2023, the price of Solana dropped by nearly 30% in a day after the SEC announced that it was a financial security. Solana’s value had increased by 100% to a market capitalization of around $7 billion in the first three months of 2023, coinciding with a rise in the cryptocurrency market. By the end of 2022, Solana had lost more than $50 billion in value since the beginning of the year. However, Solana’s price took a sharp turn in November 2022, when it dropped by 40% in a single day following the bankruptcy of FTX. The blockchain’s popularity at this time was due in part to the growing interest in NFTs. This represented a nearly 12,000% increase in value over the course of the year, with Solana tokens trading at a price of $259.96. In September 2021, the Solana blockchain’s market capitalization surpassed $63 billion, and by early November 2021, it had reached $74 billion. The value of Solana has been highly volatile since the network’s launch. It is one of the most promising blockchain platforms for mass adoption and is already being used by a number of major projects. Solana is a rapidly growing blockchain network with a large and active community. This allows Solana to process up to 50,000 transactions per second with negligible fees. Proof-of-history uses a combination of cryptography and timekeeping to create a tamper-proof record of events on the blockchain. Solana uses a proof-of-history consensus mechanism to achieve high throughput and low latency. This makes Solana highly resistant to fraud and censorship. Solana operates as a single global state machine, which means that all nodes in the network have the same view of the state of the blockchain. Solana was launched in 2020 by Solana Labs, a company founded by Anatoly Yakovenko and Raj Gokal in 2018. It is open-source and interoperable and can be used for a range of use cases, including finance, NFTs, payments, and gaming. Solana is a high-performance blockchain network that is designed for mass adoption.
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