SNEAK PEEK
- Acquisition of FTX by Binance has sent markets into disruption.
- Alameda Research is facing extreme pressure as it struggles for liquidity.
- The trouble for FTX began after it was reported that Alameda’s balance sheet’s large portion was covered by FTT and SOL token.
Ever since rumors of Alameda liquidating its Solana holdings have come out, the price of SOL has begun falling uncontrollably. Obviously, the news has hit Ethereum and Solana-based NFT markets quite hard.
The news of FTX acquisition by Binance has made the NFT markets go through a landslide besides many leading exchanges being shaken up. Today NFT News also reported FTX confirmed it will sell to competitor Binance amid worries over Liquidity at crypto exchange.
The past day has seen the value of NFTs falling drastically owing to news regarding FTX collapse. Though the plan of Binance to buy the crypto empire of Sam Bankman-Fried, FTX CEO, has halted prices from declining, doubts that the deal will finalize have pulled back the prices. ETH has dropped over 7%; whereas, SOL has fallen 37%.
Considering the price drop of Solana on Monday, there are speculations that Alameda had sold off a major share of SOL to earn new liquidity. According to the balance sheet of the company, SOL sits as its second-largest holding.
No matter what really happened, NFT marketplaces are facing the wrath of this contagion.
Based on Dune Analytics data, the daily NFT trading volume of OpenSea on Solana has declined from 4,900 SOL to 1,000 SOL since Tuesday. Moving on to Magic Eden, Solana-themed popular NFT market, the trading volume of SOL has reduced from 153,000 SOL to 84,000 SOL. If the additional data is considered, the daily trading volume of OpenSea on Ethereum has declined from 6,000 ETH to 3,900 ETH during the past day.
Director of research at NFT collective PROOF, Twitter user @Punk9059, in his tweet on Wednesday shared that OpenSea is going through its unparalleled ratio of wrapped ETH to ETH volume. This means that buyers are buying NFTs at bid prices rather than buying assets at prices offered by the seller, which shows that users are attempting to liquidate at the earliest.
Thus far today we've seen the highest percentage of WETH volume on OpenSea vs ETH volume ever.
— NFTstatistics.eth (@punk9059) November 9, 2022
This means that sellers are accepting existing bids as opposed to buyers buying at sellers' offer prices. pic.twitter.com/oahbIlz9h9
FTX.US’s NFT marketplace will not be a part of Binance’s basket during checkout, it is home for non-fungible tokens that are built on Ethereum and Solana, who are facing decline in values since such tokens face the wrath of assets reducing in value as liquidations being in progress.
