Solana Reports $52 Billion Loss in Market Cap

For many, the collapse of crypto exchange FTX in 2022 was the death knell of the cryptocurrency industry. With hundreds of thousands of investors left scrambling to recoup their investments in the onetime superstar company headed by Sam Bankman-Fried, many have questioned whether crypto will survive to the end of 2023.

One cryptocurrency that has fared especially poorly in the current grim financial landscape is Solana. Once touted as a fast, eco-friendly competitor to Ethereum or Bitcoin, the currency’s total market cap shrank dramatically, from more than $55 billion to just over $3 billion by December 2022. Many investors raced to pull out of Solana following the FTX crash, particularly in light of Bankman-Fried’s positioning as one of Solana’s biggest cheerleaders.

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However, Solana still has its ardent supporters. Crypto investment firm Multicoin Capital has continued to sing the praises of the currency, doubling down on its investments and suggesting as late as December 29 that Solana is in line to become the crypto of the future.

“Lehman was not the end of the banking industry. Enron was not the end of the energy industry,” the company said in a statement to investors. “And FTX won’t be the end of the crypto industry.”