With the autumn of crypto alternate FTX, Solana stays one of many most-impacted digital property as of date. It appears there’s no backside in sight for the SOL value which tanked by one other 8% on Wednesday, December 28.
Amid the current value correction, the SOL value has dropped beneath $10. Referred to as as soon as the Ethereum-killer, Solana has confronted a staggering 75% value correction over the past eight weeks.
Solana’s shut affiliation with FTX’s disgraced founder Sam Bankman-Fried has put the cryptocurrency beneath main skepticism. The continual drop in SOL value exhibits the quickly waning investor confidence within the Etheruem-killer.
In an interview earlier this month, Anatoly Yakovenko, co-founder of Solana Labs Inc. mentioned that he received’t touch upon the SOL value actions. He added that his focus as a substitute must be on “the know-how and having folks construct one thing superior that’s decentralized.”
FTX was holding a big amount of SOL as reserves. Nonetheless, as its native token FTX plummeted, the crypto alternate began promoting its SOL holdings in heavy amount placing strain on its value. SBF was one of many shut aids of Yakovenko and appeared alongside him at conferences and hearth chats. Commenting on this Yakovenko said:
“I’m nonetheless making an attempt to sq. what I understand him to be and like what really occurred. It simply feels actually, actually jarring.”
Will Solana Survive In 2023?
Amid the dramatic collapse within the value of Solana (SOL) over the past two months, many market consultants have began questioning whether or not Solana will survive going into 2023. Yokavenko defined that solely 4% of the initiatives constructed on Solana have been impacted by the FTX collapse.
He added that almost 80% of the groups constructing initiatives on the Solana blockchain don’t have any publicity to FTX in any respect. “There’s undoubtedly extra to Solana than FTX,” Yakovenko mentioned. He additionally added that they’re in contact with these impacted initiatives to assist them with further emergency capital.
FTX and Alameda’s enterprise arms had invested massively in Solana-based initiatives final 12 months. Moreover, FTX US additionally launched its first NFT market on Solana final 12 months. Alameda Analysis nonetheless has large publicity to SOL. because the chapter proceedings transfer forward, Yokanvenko mentioned that they nonetheless don’t have any readability on what shall occur to those holdings.
However one other co-founder Raj Gokal assured that “there’s no influence on the safety of the community from issues just like the focus of SOL tokens on Alameda’s steadiness sheet.”
The introduced content material could embody the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty in your private monetary loss.