SNEAK PEEK
- The FTX fallout has hit Solana Blockchain the hardest.
- The main reasons contributing to this fallout are The $SOL token, Solana Defi, Ecosystem investments and Parts of the Solana Treasury.
- Solana can still come back through its large treasury, strong developer community, thriving NFT ecosystems, and high network activity.
With the fallout of the FTX, many cryptocurrencies, blockchains and NFTs have been affected. But one of the significant blockchains that have been affected is Solana. Solana, built for mass adoption and globally distributed, has rapidly risen as one of the fastest-growing blockchains, by both market cap and usage, over the past two years.
SBF FTX played a significant role in this growth as it was a massive investor and the voice for the ecosystem.
Alex Valaitis, Founder of W3T Inc., further specifies the collaboration between Solana and FTX/Alameda in 4 ways: The $SOL Token, Solana Defi, Ecosystem Investments and parts of the Solana Treasury. He has further clarified why Solana was impacted and why there is a potential for it to make a comeback.
No blockchain has been hit harder by the FTX fallout, than @solana
— Alex Valaitis (@alex_valaitis) November 15, 2022
Here’s a summary of:
-How Solana was impacted
-Why it could make a comeback
If you’re involved with Solana, this is a MUST READ 🧵 pic.twitter.com/9gHSVGfwXQ
Starting with the $SOL token, he pointed out that Alameda and FTX own nearly 11% of the total SOL supply. In the last five days, SOL has tanked by 51% in price, putting it at 94% below its all-time high.
Moreover, Solana Defi has also taken a hit, with its current value at $327M compared to $10.17B in November. He adds that this primarily depended on the Project Serum, a top DEX on Solana and provided liquidity to other Solana Protocols. But, as SBF launched the Project Serum, it compromised the entire project.
Moreover, FTX was heavily invested in the Solana ecosystem through FTX ventures and Alameda, making it a spelling disaster in the current scenario. Lastly, the Solana Foundation had direct exposure of its treasury to FTX. They had $1M in assets stuck on FTX before withdrawals were paused.
