NewsletterSolana (SOL) Price: Biggest Hurdle For Recovery Amid FTX Effect
Solana (SOL) Price News: The Solana network came under immense pressure with the recent collapse of FTX and the subsequent bankruptcy. The blockchain lost value quite rapidly with the news of the Sam Bankman-Fried‘s crypto empire facing liquidity issues. Although the cryptocurrency recovered significantly since then, there is still long way to recovery to the all time high level. Compared to the price range it maintained in first week of November 2022, the SOL token is still under 50% of the value.
Also Read: Interested In Altcoins? Here Are 3 That Could Boost Your Portfolio In Ongoing Bear Market
Meanwhile, crypto analysts are predicting that Solana (SOL) price could potentially never return to the all time high of $258. In July 2021, at the peak of the bull run, the cryptocurrency had a total market size of $78.20 billion. Whereas the current market size is $4.60 billion. The recent bloodbath came due to the stake the SBF related companies had in the blockchain network. The links to FTX collapse had a huge effect on the SOL price.
Threats To Solana Network
Despite the underlying contagion effects, crypto analysts say it could be difficult for SOL to recover to the all time high. Jordi Alexander, a crypto market insider, predicted that Solana’s fully diluted valuation (FDV) of $100 billion was not justified.
“Solana never comes close to its ATH again. The main threat to Solana is a new L1 that also uses the same approach but does it in a better designed way. There is quite a strong community, the builders love it.. But I don’t think that can explain the $100b FDV that it had.”
8. Solana never comes close to its ATH again.
"The main threat to Solana is a new L1 that also uses the same approach but does it in a better designed way."
"There is quite a strong community, the builders love it.. But I don't think that can explain the $100b FDV that it had." pic.twitter.com/xXatbt5e7r
— Miles Deutscher (@milesdeutscher) December 20, 2022
As of writing, the Solana (SOL) price stands at $12.42, up 1.16% in the last 24 hours, according to price tracking platform CoinMarketCap. This is around 66% lower than the November 5, 2022 price of $37.
Also Read: Bitcoin (BTC) Price Hits A New Monthly Low, Further 20% Decline Possible
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