Solana’s Dip Accelerates: Over $50 Billion in Cryptocurrency Wiped Out By 2022 – CNBC

The Solana In this illustration, you can observe the logo and crypto representation on a smartphone screen. Krakow, Poland On NurPhoto August 21, 2021. Jakub Porzycki | NurPhoto | Getty Images Solana was hyped as the cryptocurrency that would take on ether, with a more efficient model, swifter transaction speeds and consistent costs. Whoever placed this bet had a grueling year. The Token’s market capitalization dropped from $55 billion to less than $5 billion January To just over $3Billion by the end of the year. eight counts of criminal fraud after his cryptocurrency exchange filed for bankruptcy last month. The disgraced former crypto billionaire was one of Solana’s most public promoters, trumpeting the advantages of blockchain technology and investing more than half a billion dollars in Solana tokens. “Sell me whatever you want.” Bankman-Fried told a critic In January 2021. “Then go away.” Bankman-Fried Nearly $1.2 billion worth of tokens and assets were held by companies June According to CoinDesk, it is. When FTX collapsed, investors bailed it out Solana With a total of $8 billion But These days have been quiet for the rest of the crypto world, with prices stable. Solana a further slump. . But The news broke after the latest drops, which made it difficult to predict what would happen. Solana’s Recent dip is a bit of a mystery. In Last week Solana This has dropped more than 30 percent Ether The stock market has been flat and fell 1.7% over the same period. Bitcoin Only 1.2% has fallen Among The 20 most precious cryptocurrency tracked by CoinMarketCap. The next largest loser in this stretch is Dogecoin, down 9%. In Only one hour of trading Thursday, Solana It fell to 5.8%, its lowest point since early 2021. Bankman-Fried began trading. vocally Offer Thanks for your support. Solana Market capitalization now exceeds $3.5 Billion, and the company has since recovered from its lows. Its The relative trading volume for 24-hours increased by more that 200%. During The cryptocurrency market at its peak in 2021 Bankman-Fried His optimism was shared by many others. There are both scheduled directives and an innovative proof-of–history consensus mechanism. Consensus Mechanisms are what blockchain platforms use to assess the validity and track who owns the transaction. Nodes are computers. Bitcoin A proof of work is used. Ethereum And its competitor Solana Use evidence of stake Instead Proof-of-stake systems, which do not rely on energy-intensive mines, require large users of the technology to offer collateral (or stake) to enable them to become financially independent. “validators.” Rather Instead of solving a cryptographic haveh like bitcoin, proof-of work validators verify transaction activity to maintain the blockchain. “books,” You will receive a proportionately lower transaction fee in return. Solana’s An alleged factor that distinguished was an increase in proof-of-stake. Proof of history is the ability to prove that transactions occurred at a particular moment. Solana The price of a single token rose 12,000% in 2021 and reached $250 in the following year. November. However…even before FTX’s crash. Solana The protocol was challenged in a series public battles. Much Of Solana’s Popularity was due to the increasing interest in NFTs. SerumAnother. Bankman-Fried-backed exchange, was constructed on top of Solana. When The schedule has been moved to 2022 Solana’s Limitations began to emerge. Just One month into the new year, a network failure left Solana You can’t be without service for longer than 24 hours. The Solana The token dropped from $141 to just over $94. In May, Solana After NFT minting flooded validateators and crashed the network, there was a seven-hour outage. A “record four million transactions [per second]removed Solana and caused its token price to drop 7%, CoinTelegraph reported at the time, pushing it further into the red during the onset of crypto winter. In June, another outage caused a 12% drop. The hours of downtime occurred after validators stopped processing blocks, immobilizing Solana’s promoted consensus mechanism and