Solana has seen a massive drop in market value, but here’s the catch

  • Solana has seen more than $40 billion wiped out of market capitalization over the past year.
  • Alt is up nearly 60% in the past few days, but not enough to stop the hemorrhage of its market value.

Solanas [SOL] The community has been going ‘BONKers’ since the launch of its cryptocurrency token. As a result, the social cue caught on, giving some bearers hope that it could help start a career for SOL. Despite the ongoing excitement, how much value has been lost since SOL’s bearish trend began?

Read Solanas [SOL] Price forecast 2023-24

Nose diving into Solana’s market value

According to data obtained by CoinMarketCap, the downward trend in pricing has effectively wiped out more than $47 billion from the cryptocurrency’s market cap over the past year.

After the collapse of FTX and the disclosure of the volume held by the now-defunct Alameda, Solana’s downward trend became more apparent. As a point of reference, Solana’s market capitalization was around $52 billion in early 2022, but that has since fallen to over $4.5 billion as of this writing.

In the early stages of its development, Solana was hailed as a potential competitor to Ethereum [ETH]Comparisons were made between the rate of transactions per second (TPS) for the two.

However, a closer look at the market caps of both networks revealed just how far apart they are, especially given the current bear market.

According to information obtained from CoinMarketCap, Solana’s market capitalization was $52.6 billion a year ago. Since then, he has shrunk 11 times to his time value of journalism of $4.7 billion. Compared to this, Ethereum’s market cap has only fallen three times over the same time frame, which means that Solana’s market capitalization is now only 3.1% of Ethereum’s $148 billion market size.

The price is going up, but it is not enough

Using the price range tool, it was possible to detect, on a daily time frame, that SOL lost approximately 77% of its value – which is the equivalent of more than $27 – between November 2022 and December 29, 2023. SOL showed a loss of more than 1% during The monitored trading session and it was trading at around $13.2 at the time of writing.

On the other hand, the beginning of the new year brought happiness in the form of gains of nearly sixty percent from the lowest point reached in the previous year.

Source: TradingView

Are your holdings blinking green? Check out our SOL Earnings Calculator

High hopes with BONK?

When FTX failed, it was a huge setback for Solana, and the network has been fighting an uphill battle ever since. While the BONK code may have injected some much needed adrenaline into the floundering Solana, it’s realistic to assume its impact will be small.

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