At the time of writing, Solana was up 8.17% at $9.88, erasing part of the significant losses it recorded in the week. Solana plunged significantly in the week, impacted by the negative sentiment brought on by its association with the disgraced FTX co-founder Sam Bankman-Fried (SBF).
While the majority of altcoins have plummeted this year, Solana was largely battered by the bankruptcies of the FTX crypto exchange and its sister hedge fund Alameda Research, both of which had backed the token. SOL has lost 94% of its worth in 2022 alone.
SOL has also dropped out of the top 10 cryptocurrencies in terms of market capitalization, now ranking as the 17th largest at the time of writing. DeGods and Y00ts, two of the leading non-fungible token ventures on the Solana blockchain, are migrating from the ecosystem, as previously reported.
Before FTX's bankruptcy and SBF's arrest in December on numerous fraud accusations, the former crypto kingmaker was a strong advocate of Solana, a blockchain marketed as a speedier and more efficient alternative to Ethereum. Bankman-Fried even appeared with the Solana founder Anatoly Yakovenko at conferences and virtual fireside chats.
Vitalik Buterin tweets support
After nine days of losses, SOL recovered from Thursday's low of $8.19 to a high of $10.27 on December 30, before reversing slightly to where it currently trades. SOL is down 12.37% since the past week, trading in the single digits for the first time since February 2021.
SOL erased some of its weekly losses after Ethereum founder Vitalik Buterin tweeted support for the blockchain.
"Some smart people tell me there is an earnest, smart developer community in Solana, and now that the awful opportunistic money people have been washed out, the chain has a bright future," Buterin tweeted before the mild price rebound occurred.