The cryptocurrency market has had its justifiable share of ups and downs. The 2021 bull market was one of many greatest rallies in crypto historical past, with Bitcoin (BTC) rising to a peak of round $68,000. Most different belongings adopted BTC’s trajectory and hit new highs. Solana (SOL) additionally noticed a large breakout, rising to almost $260 in November 2021. Nevertheless, the collapse of FTX in 2022 shook the digital forex market. Based on knowledge from CoinGecko, large-scale liquidations occurred within the second half of 2022, with Bitcoin (BTC) falling to the $15,000 stage and Solana (SOL) falling to the $9 stage. Whereas many thought this was the top of the highway for SOL, the asset made one of the crucial vital comebacks in monetary historical past. Let’s talk about the way it occurred.
Why did Solana crash to $9 in 2022?
Solana (SOL) was hit exhausting after the collapse of FTX because of the change’s massive SOL holdings. FTX is sort of bullish on SOL, holding roughly 55.8 million SOL tokens (value roughly $1.16 billion) on the time of chapter. This determine represented roughly 10% of SOL’s whole circulating provide and accounted for almost all of FTX’s holdings. FTX started promoting most of its shares to repay collectors, leading to SOL’s worth plummeting.
Not solely did the value of Solana (SOL) drop considerably, however we additionally noticed an exodus of builders from the community. Investor sentiment in the direction of the challenge plummeted, and the way forward for the challenge was thrown into doubt.
How did the challenge recuperate?
Regardless of the large crash, Solana (SOL) has emerged as the highest blockchain amongst customers. The SOL community attracted customers and builders due to its means to course of massive volumes of transactions. Further developments resembling high-performance Layer 1 have created additional confidence amongst traders.
Solana (SOL) has additionally turn into a preferred blockchain for launching meme cash. Pepe (PEPE), Bonk (BONK) and others have generated a number of curiosity inside the cryptocurrency group. The US Cryptocurrency Protection Act additionally contributed to the rise in SOL’s worth.
Solana (SOL) hit a brand new all-time excessive of $293 in January 2025. The challenge’s unbelievable resurgence has earned Solana the title of “one of the crucial resilient cryptocurrencies” available on the market.
