Why the price of crypto Solana crashed the most in a week amid FTX collapse

“If we look at the performance of Solana, it has fallen by 95% from its all-time high in November 2021. The recent developments in FTX have shaken the crypto market which is turning investors away from riskier assets. Market it is anticipating that Alameda Research may sell its entire SOL holdings, which is its second largest holding after FTX.”

It is important to note that Solana is a layer 1 blockchain meant to facilitate smart contracts and form the foundation for crypto-related financial services and the long-term potential of SOL cannot be underestimated as DeFi has a massive adoption. Adoption will flourish at Solana and others. Similar blockchains, Mittal said.

Solana is supported by Almeida Research. crypto trading houses like ftx Run by Sam Bankman-Fried. The venture capital arm of FTX had invested in several Solana-based projects.

“The FTX fiasco has caught Solana by surprise, dragging it further down to its current state. Since this year’s hack, SOL has been working hard to stabilize itself. FTX’s Solana-based Decentralized exchange (DEX) Serum was also down 53% recently. Property, like BTC wrapped on the Solana DeFi ecosystem, was backed by FTX, which now has almost zero value. The Solana asset and other assets in the ecosystem will be volatile in the near term Future, FTX and its founding team were big supporters of the Solana ecosystem. SOL is Alameda Research’s second largest holding after FTT, which is why Solana is facing this crisis.”

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.

(with inputs from agencies)