One of the currencies that has been hit hardest by the general bearish trend in the cryptocurrency market has been the Solana network’s native asset, SOL. Unable to recover after the sharp decline that started in November, SOL dropped 73% from $40 to below $10. The cryptocurrency has dropped 93% since the start of the year.
Solana was shaken by the decision to migrate the largest NFT projects operating on the network to the Ethereum and Polygon network. SOL, the crypto currency with the most losses in the top 100 today, has increased its value to 12% since the beginning of the week. The Solana network is now at risk of migrating more projects and validators to other Blockchain networks.
Blockchain analysis company Santiment shared the latest status of the Solana network. Santiment emphasized that the concern over the Solana network has continued to increase in recent days. The security of the network, which is now at risk of losing its validators, could also be put at risk and things could turn into a dead end for Solana. The fact that there is no positive development for the recovery of the Solana network at the moment adds to the concerns.
“#Solana is now down 73% in the past 8 weeks. The #FUD is strong toward the once thriving asset, but there appears to be some pretty good justification with development activity coming to a halt. Read our take on what metrics are pointing to for $LEFT.”
Solana, which gained an important place in the DeFi industry last year, has now lost a significant amount of assets. According to DefiLlama data, the total value locked in the Solana network is now $210 million, up from $10 billion in the same period last year. On the other hand, according to Blockchain data, it was noted that the Binance funding rate turned positive with the increase in short selling transactions of investors who wanted to evaluate the decrease in SOL. As a result, the current outlook of the Solana network is fraught with uncertainty and anxiety. The smart contract network, once touted as Ethereum’s biggest competitor, may be in for a tough time in 2023.