Things seem to be getting worse for the so-called ‘Ethereum Killer’, as data from CoinGecko showed that Solana lost another 17% within a 24-hour duration, extending previous declines.
Due to these continuous declines, the coin of the layer-1 blockchain platform has dropped out of the top 20 crypto in the market according to their market capitalization.
SOL drops
On Thursday, the price of the SOL token declined to as low as $8.17, which is the lowest it has been since February 2021.
The SOL token price had fallen below the $10 mark on Wednesday for the first time since the same time period, but the last 24 hours have seen a much sharper decline in its price than before.
At the time of writing, the price of the SOL token had rebounded slightly to $8.30, but it still puts the price of the token lower by 16%.
This means that the weekly decline of the Solana crypto stands at almost 32%, while its decline in two weeks is around 41%.
Overall, there has been a 97% drop in Solana’s value since the crypto reached its peak in November last year at a price of $260.
The coin has lost almost 95% of its value since the beginning of the year.
The impact
Due to its decline in price, Solana is no longer in the list of the top 20 cryptocurrencies in the market compiled by CoinGecko because its market capitalization has dropped below the $3 billion mark.
At the time of writing, Solana stands at the 22nd position on the market tracker of the platform. Until recently, Solana had been in the list of top 10 crypto in the market.
In November 2021, the market cap of the crypto had reached a peak of $76 billion. Moreover, SOL is the only coin in the top 100 that has recorded a loss in double-digits in a day.
It recorded a sharp drop on Thursday afternoon and ended up losing its value by over a dollar without any clear cause for the loss.
However, there is no denying that the once-soaring token has had to deal with a number of challenges this year, after enjoying a surge in chain activity and value in the previous one.
The challenges
The most pressing challenge for Solana is none other than the implosion of FTX and Alameda Research. Both of the companies had made hefty investments in the SOL token and the Solana ecosystem.
In addition, Sam Bankman-Fried, who founded the two companies, had also been an outspoken supporter of Solana.
When the downfall of the two companies happened in November, the entire crypto market took a hit, but Solana’s close association with them left it significantly more battered than the rest.
Apart from that, there have also been technical challenges for the blockchain platform, as there have been multiple incidents of network downtime.
In addition, two of its most popular tokens, which are DeGods and yoots, will also be bridged to the Ethereum and Polygon blockchains, respectively.
