Solana Market Cap Shrinks Below Litecoin in Protracted Descent

The market capitalization of the popular proof of participation blockchain, Solana, slipped under the OG’s work test blockchain, Litecoin, according to Coingecko.

Once nicknamed the “Ethereum Killer”, from Solana The SOL token started trading in 2022 at $178.89, with a market capitalization of $55.09 billion in January 2022. Then came the crypto winter, the link that saw Ethereum, the old proof-of-work blockchain, switch to proof-of-stake and the fallout from the collapse of cryptocurrency exchange FTX. Now, SUN It is currently trading at $11.91 with a current market capitalization of $4.32 billion, a 94.9% drop for the year.

Solana is a proof-of-stake layer 1 blockchain that allows developers to create decentralized applications, or dapps, and non-fungible tokensbetter known as NFTs.

Contrast this with Litecoin, which began trading in 2022 at $151.09 with a market capitalization of $10.47 billion. Fast forward to November 22, 2022, and Litecoin It is trading at $69.36 with a market capitalization of $4.97 billion, down 69.1%.

The last Solana recession began with the collapse of FTX. On November 14, days after FTX filed for Chapter 11 bankruptcy protection, attention turned to the Solana Foundation’s exposure to the failed trade, including approximately $1 million in cash or cash equivalents on at November 6, when stopped processing withdrawals.

“This is less than 1% of the Solana Foundation’s cash or cash equivalents and, as such, the impact on Solana Foundation’s operations is negligible,” the Solana Foundation said in a statement. mail.

But FTX had a sizable amount of SOL at the time of its collapse: $982 million in SOL on November 10, according to Forbes and the financial times.

“We’re not sure how much of the SOL client was on FTX,” Solana Foundation head of communications Austin Federa said. decipher. “But the Foundation had less than $1 million in FTX, Solana Labs had nothing.”

FTX, along with its founder and former CEO Sam Bankman-Fried, has long been associated with Solana, having been involved in a $314 million Solana Labs fundraising through Alameda Research.

Unfazed by the current recession, the Solana community still coalesces around the conflicting blockchain and token. “The determination of the community has been really strong, it’s a pleasure to see it,” said Federa.

“We launched in 2020 after the markets crashed and the world went into lockdown – chewing glass is in our DNA and we will get through it together,” Solana co-founder Anatoly Yakovenko tweeted on Nov. 9, 2022.

In a case of “not aging well,” a tweet from the former billionaire has come back to haunt Bankman-Fried. In January 2021, he fiance to buy an investor’s entire SOL position when Solana was at $3 a coin. “Sell me all you want. Then fuck off,” she said.

Nearly two years later, with the FTX FTT token trading at $1.30 as of this writing, that investor, who goes by @CoinMamba on Twitter, had the last laugh.

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