In the midst of market turmoil within the crypto-economy, The climactic FTX collapse has hit cryptocurrency solana the hardest in the past 30 days. Since the FTX crash, the digital currency has fallen 8.5% against the US dollar over the last month and has fallen 94.9% to date since reaching an all-time high Solana on November 6, 2021.
Solana’s previous relationship with FTX, Alameda continued to undermine the project, and Solana-based exchange Raydium was exploited for $2 million
since FTX’s demise. Cryptocurrency solana (SOL) has taken a hit, and the digital asset, once a top 10 contender, is about to be pushed out of the top 20 rankings in terms of market capitalization. The reason the Solana project has hit so hard compared to other crypto assets in this space is due to the project’s deep ties with FTX and Alameda Research. Team members of this project published a post highlighting this connection, as the Solana Foundation wrote about the situation on November 9th.
The Foundation said, “As of 11/6/22, when FTX.com stopped processing withdrawals, approximately 100 in cash or cash equivalents on FTX.com. In addition, the Solana Foundation held “3.24 million shares of common stock of FTX Trading LTD,” “3.43 million shares of FTT tokens,” and “134.54 million shares of SRM tokens.” Additionally, 58.08 million SOL has been sold to his FTX and Alameda since 2020. To make matters worse, two forms were lost: Solana-wrapped Bitcoin (SOBTC) and Solana-wrapped Ethereum (SOETH). their pegs. FTX is responsible for creating the wrapped token, which has traded well below the spot market value ofBTCand ETHsince the collapse.
Also, developers had to forktheproject because FTX controlled the “upgrade key” of the project, so a decentralized exchange built on Solana I also had a problem with the software Serum. Additionally, a hacker dubbed “FTX Accounts Drainer” held a significant portion (20.28%) of the serum (SRM) supply. All of these factors have had a negative impact on the Solana project, and it didn’t help that Solana suffered a major outage a month prior to his FTX-related issues. Solana’s rich list stats are also not very useful for your project. Because 50 owners own 25.36% of his SOL supply and 100 owners own 33.90% of the supply. This is a significant number of his SOL for 100 owners out of 9,154,449 SOL owners currently.
SOL has lost 8.5% in value over the last 30 days, andcrypto assets have fallen 94.9% against the dollar since 6 November 2021. Cryptocompare.com indicators show that 38.5% of his SOL trades on Dec. 16 were paired with Tether (USDT). 34.06% of SOL swaps are traded against USD and 17.44% of SOL trades are swapped against BUSD. Today, the most active exchanges handling SOL trading include Coinbase, Binance, and Digifinex. On November 6, 2021, SOL was ranked 4th in terms of largest crypto market capitalization, and today SOL is struggling to hold on to 18th place.
Solana’s market performance suffered even worse news on December 16, when Solana-based exchange Raydium was exploited for $2 million. SOL’s market value fell further on Friday after Raydium ‘s discovery highlighted that $2 million was “bridged toETH“. By 10:15 am ET, SOL was down 6.1% against the dollar following reports of a Raydium exploit.
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