Solana is a blockchain-based platform designed to achieve high-speed transactions and low gas fees. This article will discuss, "Why Did Solana Crash in 2022? Should You Still Invest in Solana in 2023?" Let's get started.
Why Did Solana Crash in 2022?
- The FTT coin collapse and the FTX exchange turmoil had an impact on the whole cryptocurrency market, but Solana was particularly hard hit. On November 9, Solana's TVL was above $620 million, but by November 13, it had fallen to just $342 million. Significant instability for Solana and platforms connected to Solana followed FTX's collapse. One of the largest crashes occurred when the SOL token's price dropped below $20 and Solana's total market cap dropped out of the top 10 positions.
- Solana Foundation has 3.24m shares of FTX Trading LTD. 3.43 million FTT tokens and 134.5 million SRM tokens are held by the Solana Foundation through the Bankman-Fried-founded decentralized exchange (DEX), Project Serum.
- Lending and borrowing platform Solend, running on the Solana blockchain saw the value of its assets dropping from $280 million on Nov. 2 to under $30 million now.
- On account of FTX Fallout, Solana DeFi suffered over $700M in value wipe out.
- The situation for Solana has gotten worse since DeGods and yOOts left.
- Finally, Solana's biggest problem has been that it has had significant collapses as a result of both network outrages and declining market conditions.
Should You Still Invest in Solana in 2023?
Solana has outperformed the majority of other cryptocurrencies, despite trading below its all-time high of 260 USD in 2022.
In 2023, it's never too late to buy and invest in Solana (SOL), as Solana will continue to amaze the cryptocurrency market with its cutting-edge innovation and new infrastructure. Solana has established itself as a popular host for a variety of dApps, DEXs, DeFi platforms, and automated market makers (AMM) today.
Not only that, but Solana has also recently entered the NFT (non-fungible tokens) market through its new NFT marketplace, Solonart. Thanks to the Solana blockchain, the distance between NFT investors and artists can now be closed.
Why Did Solana Crash in 2022? Should You Still Invest in Solana in 2023? - Hopefully, this article can help you to get some knowledge.
