New weekly 30% plunge for Solana

The token's market capitalization collapsed from $55 billion in January to just over $3 billion at the end of 2022.

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Solana was touted as the cryptocurrency that would challenge Ether with a more environmentally friendly approach, faster transaction speeds and more stable costs.

Investors who took that bet have had a miserable year. The token’s market capitalization collapsed from $55 billion in January to just over $3 billion at the end of 2022.

Among Solana’s biggest problems in late 2022 was his close relationship with FTX founder Sam Bankman-Fried, who is facing fraud charges after his cryptocurrency exchange went bankrupt last month. The former billionaire was one of Solana’s most ardent supporters, touting the benefits of blockchain technology and investing over half a billion dollars in Solana.

Bankman-Fried’s companies held the token and related assets worth nearly $1.2 billion in June, according to documents reviewed by CoinDesk.

In recent days, although the cryptocurrency market seems stable, Solana has continued to plunge. In the last week it has fallen more than 30%. Ether has remained stable, falling 1.7% over the same period, while bitcoin has retreated just 1.2%.

Read Also: Y00ts and DeGods Are Leaving Solana

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