The price of the decentralized finance (DeFi) token Solana (SOL) continues to drop amid questions about the network’s close relationship with the FTX cryptocurrency exchange, which has since gone bankrupt.
Will Solana (SOL), which lost $1 billion in a week, collapse further?
Currently, Solana is trading at $9.17, down 3.2% on the day and 22.93% lower from the previous week, with the SOL price falling as low as $8.14 at one point, the most since Feb 19, 2021. low price.
Left price 1-day chart. Source: Finbold
The rapid price decline was especially accelerated by the arrest of FTX founder Sam Bankman-Fried, and SOL wiped $1 billion from market capitalization last week, falling from $4.36 billion to $3.33 billion at the time of publication.
Left market cap 7-day chart. Source: CoinMarketCap
Solana
Elsewhere, Ethereum co-founder Vitalik Buterin discussed a potentially bright future for Solana. After what many refer to as “terrible opportunistic money people” is removed from the blockchain, Buterin expressed hope that the Solana community will also have an opportunity to thrive.
“Some smart people tell me there’s a serious community of smart developers in Solana, and now that people’s terrible opportunistic money is blowing up, the chain has a bright future. It’s hard for me to say anything from the outside, but I hope the community gets a fair chance to thrive.”
It seems that the entity’s ambition to become the “Ethereum (ETH) killer” was scuttled as FTX’s results continued. After what happened on the crypto exchange, people’s confidence in Solana’s future has drastically decreased.
Investors are still trying to determine whether the close relationship between the two parties will jeopardize Solana’s future. It is particularly notable that Bankman-Fried and FTX provided a large amount of assistance to the Solana team when operations were at their peak.
However, Solana co-founder Raj Gökal said the future looks positive, suggesting that the ecosystem is not worried about SOL’s price action.
Gökal said, “I think this is really good in the long run. “We’ve always heard really negative reviews about FTX’s inclusion and concentration of ownership stakes in the ecosystem,” he said.
Developers and projects Exodus Solana network
At the same time, the network is seeing a large number of projects and developers leaving. For example, two of the most successful attempts to create non-fissile tokens (NFTs) on the Solana blockchain, DeGods and Y00ts, recently announced their intention to migrate to the Polygon (MATIC) ecosystem.
Token Terminal, a data aggregator, has made some interesting claims that the number of Solana developers has dropped by nearly 90% in 2022. Solana, however, cast doubt on the accuracy of the data.
Disclaimer: The content on this site should not be considered as investment advice. Investment is speculative. When investing, your capital is at risk.
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