The cryptocurrency market has seen its justifiable share of ups and downs. The 2021 bull run noticed one of many greatest rallies in cryptocurrency historical past, with Bitcoin (BTC) rising to a excessive of round $68,000. Most different property adopted BTC’s trajectory and reached new peaks. Solana (SOL) additionally skilled a large breakout, rising to nearly $260 in November 2021. Nevertheless, the FTX crash of 2022 shook the cryptocurrency market. We noticed huge sell-offs, with Bitcoin (BTC) falling to the $15,000 stage and Solana (SOL) falling to the $9 mark by the top of 2022, in line with information from CoinGecko. Whereas many thought it was the top of the street for SOL, the asset generated one of the important recoveries within the historical past of finance. Let’s analyze the way it occurred.
Why did Solana collapse to $9 in 2022?
Solana (SOL) took an enormous hit after the FTX crash resulting from giant SOL holdings on the change. FTX was fairly bullish on SOL and owned round 55.8 million SOL tokens, valued at round $1.16 billion, on the time of its chapter. The determine represented round 10% of SOL’s total circulating provide and was made up of the vast majority of FTX holdings. FTX started promoting a big portion of its holdings to pay collectors and the value of SOL plummeted because of this.
Not solely did Solana (SOL) worth expertise its most important drop, however the community additionally skilled an exodus of builders. Investor sentiment across the venture plummeted and the way forward for the venture was left unsure.
How was the venture recovered?
Regardless of its huge drop, Solana (SOL) emerged as a high blockchain amongst customers. The SOL community may deal with giant transaction volumes, which attracted customers and builders. Different developments, akin to high-performance layer 1, generated better confidence amongst buyers.
Solana (SOL) additionally turned a preferred blockchain for launching memecoins. Pepe (PEPE), Bonk (BONK), and so forth., noticed substantial curiosity inside the crypto group. Professional-crypto laws within the US additionally helped enhance SOL’s worth.
Solana (SOL) hit a brand new all-time excessive of $293 in January 2025. The venture’s unimaginable comeback has earned it the title of being “one of the resilient cryptocurrencies” in the marketplace.
