The cryptocurrency market has seen its fair proportion of ups and downs. The 2021 bull run noticed one of many greatest climbs in crypto historical past, with Bitcoin (BTC) climbing to a peak of about $68,000. Most different property adopted BTC’s trajectory, hitting new peaks. Solana (SOL) additionally noticed a large breakout, climbing to just about $260 in November 2021. Nonetheless, the FTX collapse of 2022 shook the crypto market. We noticed large liquidations, with Bitcoin (BTC) falling to the $15,000 stage, and Solana (SOL) dipping to the $9 mark in late 2022, based on CoinGecko information. Whereas many thought it was the top of the street for SOL, the asset delivered one of the vital important comebacks in finance historical past. Let’s focus on the way it occurred.
Why Did Solana Collapse To $9 In 2022?
Solana (SOL) took an enormous hit after the collapse of FTX because of the trade’s huge SOL holdings. FTX was fairly bullish on SOL, and held about 55.8 million SOL tokens, valued at round $1.16 billion, on the time of its chapter. The determine represented about 10% of SOL’s whole circulating provide, and made up of a majority of FTX’s holdings. FTX started to promote a big portion of its holdings to repay collectors, and consequently, SOL’s value tanked.
Not solely did Solana’s (SOL) value see its most vital dip, the community additionally noticed an exodus of builders. Investor sentiment across the undertaking plummeted, and the undertaking’s future was put into query.
How Did The Undertaking Rebound?
Regardless of its large crash, Solana (SOL) emerged as a prime blockchain amongst customers. The SOL community might deal with massive transaction volumes, which attracted customers and builders. Further developments, resembling a high-performance layer-1 led to additional confidence amongst traders.
Solana (SOL) additionally grew to become a preferred blockchain to launch memecoins. Pepe (PEPE), Bonk (BONK), and so forth., noticed substantial curiosity throughout the crypto neighborhood. Professional-crypto laws within the US additionally helped propel SOL’s value.
Solana (SOL) went on to hit a brand new all-time excessive of $293 in January 2025. The undertaking’s unimaginable comeback has garnered it the title of being “one of the vital resilient cryptocurrencies” available in the market.
