In an exciting turn of events, the native token of the Solana Blockchain (SOL) has outranked Polygon (MATIC) to reclaim its position among the top cryptocurrencies with the most significant market cap.
According to data from the market tracking platform, CoinMarketCap, the SOL token now has a market value of over $9 billion after dropping to below $5 billion in November 2022. This value puts it in the 10th position among the top cryptos with the largest market cap.
Over the last 24 hours, crypto traders bought and sold over $964 million of the SOL token, pushing its value to $24.65, up from nearly $8.14 three weeks ago. After the FTX crypto exchange went bankrupt in November 2022, SOL lost over $8 billion of its market cap and fell from the ranking to position 16th.
Before the FTX fiasco, Solana used to be one of the top ten largest cryptos competing with Binance Coin (BNB), Cardano (ADA), and Ripple (XRP). According to CoinMarketCap data, it ranked the 9th largest crypto on November 5, with a market cap of over $13.5 billion, while it traded above $37.5.
During new year’s eve, Y00topia and DeGods, two prominent NFT projects building on the Solana blockchain, announced their departure to the rival Ethereum network.
DeGods will officially bridge to Ethereum in Q1 of 2023.
The bridge is not the destination.
It is on the path to get there. pic.twitter.com/Wy8CbGx5VZ
— DeGods III (@DeGodsNFT) December 25, 2022
Many famous Web3 figures made fun of Solana’s fall from grace due to its exposure to FTX. Crypto influencers such as Ben Armstrong asked investors to sell the SOL holdings, claiming the blockchain would face out this year.
Solana’s Connection to FTX
In 2021, Solana raised about $300 million in a private Initial Coin Offering (ICO) from several private investment companies, including Alameda Research. In return for participating in the fundraising round, Alameda earned a stake in a segment of SOL.
The bankruptcy filing of FTX in November 2022 connects to more than 70 other Web3 businesses, including Alameda Research.
Abdulkarim Abdulwahab is a writer and editor with over six years of experience in journalistic writing. He crafts 100% unique stories from industry leaders’ comments on Twitter. He also collects market data from CoinMarketCap, and research reports from analytic firms like CryptoQuant and Chainalysis.
You can reach him via LinkedIn or Telegram.
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