- Avalanche (AVAX) surpasses SOL by market cap despite a 2% daily decrease.
- Solana’s (SOL) global market capitalization has shrunk 10 times since January.
- DeGods and y00ts, two prominent Solana NFT collections, switched to ETH.
The embattled altcoin Solana (SOL) continues to skid across the TOP 50 cryptocurrencies by market capitalization. Having lost 96.2% of its market value since the all-time high of $259.96, the popular altcoin has dropped to single digits for the first time in two years. On top of that, competing altcoin Avalanche (AVAX) stormed in to take away the #19 spot by market cap, increasing the risk for SOL to drop out of the TOP 20.
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Hahaha. My @coingecko app doesn’t want to admit $avax flipped $sol.
pic.twitter.com/qIbGwMKOR9
— TheSkyhopper (@TheSkyhopper) December 29, 2022
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Why is Solana on Thin Ice?
According to crypto analyst Miles Deutscher, there are several reasons behind the breakdown of Solana. Firstly, venture capital dashed into SOL’s blockchain during the crypto rise in 2021.
Second, the crypto analyst believes that many of SOL’s metrics were misleading, even though now it’s pretty one-sided. For instance, the total transaction volume is descending day by day, while the total market cap has lost 75% of its proceeds since early November.
$SOL is now down -96.2% from its ATHs.
A combination of misleading metrics, VC pumping amidst an unprecedented bull market helped get it there.
But is it truly dead? Or can it make a recovery?
Watch my full analysis now: https://t.co/xMFp7Jh4iq pic.twitter.com/JPXSJcAq3e
— Miles Deutscher (@milesdeutscher) December 29, 2022
Avalanche on a Downward Slope
On top of that, SOL’s competitor also endured the hardships of the intense crypto winter. Despite being one of the most promising altcoins during the 2021 massive bull run, AVAX also had to come to terms with the unsympathetic bears.
At press time, the 19th-ranked altcoin trades at $11.16, according to CoinGecko. Dropping 18.8% in value in the last two weeks, AVAX had a year full of hard knocks, with 89.6% in the red.
On the Flipside
- Despite flipping SOL by market cap, AVAX also dropped in value.
- There were rumors on Crypto Twitter that Magic Eden is leaving Solana’s blockchain too.
- The largest Solana-based NFT marketplace previously mentioned expansion plans.
- This theory has been rejected, and Market Watch apologized for spreading incorrect info.
Why You Should Care
The breakdown of FTX, once the second largest crypto exchange globally, spread contagion across the crypto sector. The corrupt once-a-billionaire Sam Bankman-Fried was a loyal SOL supporter, even though Alameda Research dumped their SOL share shortly before the FTX collapse.
Find out what’s going on with the most popular altcoins:
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