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What about Solana, a cryptocurrency that used to cost $258 and now only costs $14?

Solana has noticed an increase in interest in the market since the launch of NFT collections. | Font: Solarium

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The current crisis cryptocurrencies This affects a large number of highly supported financial assets. Solarium is one of them.

The currency has been experiencing a constant decline in value for several months, falling from $258 a unit a year ago to $14 today. What’s going on with this coin?

Solarium
The historical evolution of Solana’s value. | Font: CoinmarketCap

Strength of Solana

Solarium is an open source decentralized finance (DeFi) project officially launched in 2020.

Its use allowed the development of dApps or decentralized applications, and financially it was advertised as a larger network, allowing more transactions than networks such as ethereumone of its main competitors in the market.

Its technology is based on a mixed protocol that combines Proof of History (PoH) and Proof of Stake (PoS), avoiding the large Ethereum mining farms that were Proof of Work (PoW) before the merger.

In addition, it has become a favorite in the NFT market for minting and selling.

Finally: Solarium was presented as one of the best alternatives ethereum improving its use and production in almost all its aspects.

problems come

However, praise for its speed and number of transactions has been marred by severe system instability.

It was power outages for at least 8 hours that were affected Solarium in recent months, causing great concern among users. Of course yes cryptocurrency wants to be like a “VISA card” in this market, service outages only make investors flee.

In addition, he is accused of Foundation Solariumbehind the project, invest in high-risk capital, with a high probability of losing liquidity.

His condition worsened from FTXthe exchange house is currently in a state of bankruptcy.

Sam Bankman-Fried, owner of the exchange and Alameda Research, is a major investment holder in Solariumsince he supported his program even before its release.

To correct the mismanagement and lack of liquidity in his companies as a result, Bankman-Fried could sell his holdings in Solarium which he supported through companies. The sale caused another drop in an already dying project.

Solarium stepped forward, sending a message of calm: they assure that their exposure to the exchange Cryptocurrencies FTX this is minimal.

On these dates Solarium it costs $14.49, which is almost 50% less than in the last 7 days.

This is hardly the end Solariumbut the crisis hit him in every way. Its base is still one of the most important on the market, but its performance leaves a lot to be desired. Can they be resolved along the way, or will it all end in a try?

We recommend you METADATA, an RPP technology podcast. News, analytics, reviews, recommendations and everything you need to know about the tech world.

Source: RPP

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