Solana Tumbles Again, Bringing Crypto Token’s 2022 Plunge to 94%

(Bloomberg) -- Solana, the cryptocurrency backed by fallen crypto mogul Sam Bankman-Fried, tumbled on Wednesday amid concerns that large holders may be about to offload the token.

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Solana dropped as much as 12% on Wednesday and was trading 8.8% lower as of 8:40 a.m. in London. Other tokens saw modest declines, with Ether slipping 1.3% and Bitcoin down 0.3%.

While other so-called altcoins have suffered steep declines this year, Solana has been pummeled by the bankruptcies of Bankman-Fried’s crypto exchange FTX and his hedge fund Alameda Research, which had backed the token. The coin has lost 94% of its value in 2022.

“General confidence in Solana’s future has taken a hit given its close connection with SBF,” said Martin Lee, data journalist at blockchain research firm Nansen, using Bankman-Fried’s initials.

DeGods and Y00ts, two of the top nonfungible token projects on the Solana blockchain, are leaving the ecosystem and migrating to the Polygon ecosystem, CoinDesk reported on Monday.

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