It’s official – the end of the year didn’t bring much good news for altcoin investors around the world. The price of Bitcoin remains at a relatively low level and sentiment among crypto investors remains bearish. Of course, the current situation has nothing to do with blockchain technology in particular – not only cryptocurrencies, but all markets in general are going through hard times. Without further ado, let’s take a look at the most interesting altcoin news from the last week of 2022!
Solana in deep crisis because the SOL price cannot stop falling
Solana (SOL) was once the most promising altcoin in the blockchain ecosystem. As we move into 2023, Solana is instead increasingly proving to be one of the biggest disappointments.
On Thursday, December 29, Solana price dropped to $8.14. It marks the lowest point Solana has reached in nearly two years, while it has been plagued by repeated errors, outages and other technical problems.
At its current level of around $9, Solana is down 96% from its all-time high of $260 in November 2021. While the bear market affects all coins and tokens, Solana is faring much worse than its competitors – both Bitcoin (BTC) and Ethereum (ETH), for example, are down only about 76% from their November 2021 record highs.
Experts disagree about the specific reasons why Solana is doing so poorly. The main reason, of course, seems to be the fact that Solana has so far been technologically sub par and has suffered numerous glitches and downtime. However, many cryptoanalysts point out that Solana is one of the coins most affected by the collapse of the FTX exchange. Before FTX’s demise, SOL was still around $37. Shortly after Sam Bankman-Fried’s arrest, Solana lost more than $1 billion in market value.
Other experts believe that a major factor in SOL’s poor run has been the disappointing performance of Solana-based NFTs. So far, SOL-powered digital collectibles have not gained popularity. In addition, many Solana NFTs such as DeGods and y00ts will soon be connected to other networks such as Ethereum and Polygon, meaning that Solana will increasingly lose its exclusive NFT collections.
Regardless of the reasons, the fact is that Solana’s market value continues to shrink at a rapid rate. In the last week of 2022, the SOL price has fallen by more than 12%. Currently, Solana is the 17th largest coin in the market, but if the trend continues, SOL may soon fall out of the top 20.
BitDAO price surged 20% after approval of a $100 million buyback
Even in the bear market, some cryptocurrencies can outperform expectations. A relatively lesser-known token called BitDAO (BIT) has risen almost 20% in the last 7 days, making it into the list of the top 20 coins in the market.
BitDAO is a decentralized, autonomous organization with a mission to make DeFi solutions more accessible, transparent and fair. It is one of the most important DAOs in the blockchain ecosystem, and one that is actually considered to be completely decentralized, as all decisions are made through voting.
The reason for this sudden price burst of the BitDAO token is the approval of a $100 million buyback plan. On December 30th, the majority of BIT token holders officially approved the proposal for a massive buyback of BitDAO tokens. Starting January 1st, BitDAO will buy $2 million worth of BIT every day for 50 days, which is expected to massively increase the BIT price.
Without the help of Elon Musk, Meme Coins will continue to lose value
The past few months haven’t been kind to meme tokens, and the last week of 2022 is no different. Again, meme cryptocurrencies were among some of the worst performing coins on the market.
Although Dogecoin (DOGE) is still the 8th largest cryptocurrency in the world, it is rapidly losing value. In the last 7 days, the DOGE price has fallen more than 9%. In comparison, Dogecoin’s main competitor Shiba Inu (SHIB) is doing slightly better, as the SHIB price has only fallen less than 2%.
Maybe 2023 will be better for meme cryptocurrencies, but for now it doesn’t look like the DOGE rate can go much higher without the support of “the Dogefather” Elon Musk. Unfortunately for Dogecoin holders, Tesla’s CEO has been silent about his cryptocurrency of choice since taking over Twitter.