Crypto market bloodbath hits Solana particularly hard
The past several days have been trying times for crypto investors as a broader market pullback has wreaked havoc on token prices. While Bitcoin and Ethereum have sustained over 20% declines each over the past week, a number of emerging projects have been hit even harder, including Silicon Valley darling Solana which has seen its token price decline some 40% week over week.
The Solana token now sits around $52, a near 80% decline from its November all-time-high of $260.
As broader market uncertainty is pushing investors across the board to minimize risk, emerging crypto networks are finding themselves in a tough position. Solana has been one of the year's breakout success stories, thanks in no small part to a close embrace of venture capitalists who see the blockchain as a worthwhile competitor to Ethereum. The platform's lower fees have attracted developers, though the network has come under fire for lengthy outages.
The question investors are asking is whether Solana's developer ecosystem has matured enough to weather a potential crypto winter.
In a tweet Wednesday, Solana co-founder Anatoly Yakovenko gave advice to others in the crypto space, "[B]eing a founder means building with fanatical conviction, through the ups and downs. It can be a lonely experience, try to make friends."