Solana Ecosystem drops 98% following FTX Crash, from $10.17 billion

Solana Ecosystem drops 98% following FTX Crash

Defi news, News

The Solana ecosystem fell approximately 98% to $210 million after the FTX debacle from its high of $10.17 billion in November 2021, creating uneasiness in the community.

Because Solana Foundation had around 3.43 million FTT tokens and 134.54 million SRM tokens stranded on FTX, the FTX crisis forced it to disclose the entire scope of its financial connections to FTX and Alameda Research.

The fact that Sam Bankman-FTX Fried and Alameda Research consistently backed Solana initiatives hurt them in the present market environment.

Alameda Research liquidators now own Solana Tokens worth $643 million, according to the report from last month. These SOL tokens are locked; as a result, they cannot be traded and are not in use. These tokens now belong to the liquidators since FTX and Alameda filed for Chapter 11 bankruptcy protection.

The SOL tokens may not be in use for years even after they are unlocked since they are now the subject of legal battles. It may be locked for more than 10 years up to the conclusion of the FTX bankruptcy procedures.

FTX, Alameda, and the cryptocurrency investment company Multicoin Capital regularly worked together on projects. Multicoin supported a startup in capital development, an interoperability network, and other things using FTX.

Multicoin supported Solanas Eden Network with Alameda, as well as the NFT platform Metaplex, a stablecoin system, and FTX as an investor and user.

621df511d92a9051340d130b 1500x500 jpeg

DeGods and y00ts, two of the most significant NFT projects in the Solana ecosystem, have declared that they are switching to Polygon and Ethereum, respectively. There are rumors that both initiatives asked the Solana foundation for financing in order to continue using the blockchain.

The cost of a Solana token has significantly decreased from reaching an all-time high of $259.90 in November 2021. Between May and November 2022, the SOL cost varied between $29 and $30. At the time of writing, SOL is currently selling at $10.06.

Compiled by Coinbold

blockchain, ETH, FTX, NFT, Polygon