The tumultuous crypto markets and the collapse of FTX has hit the solana digital asset hard in the last 30 days. In comparison to the US dollar, the crypto has seen a drop of 8.5% in the last month. This slump is 94.9% less than its yearly high established on November 6, 2021.
Previous Association with FTX Alameda To Blame For Solana’s Plunge
Due to its past connections with FTX and Alameda Research, solana (SOL) is in danger of falling out of the top 20 in terms of market capitalization. The project’s team recently posted a blog to highlight the association. The Solana Foundation described the situation as such. November 9.
The Foundation declared that it had “~$1 million in cash or cash equivalents at FTX.com as of 11/6/22 when FTX.com stopped processing withdrawals.” Moreover, the Solana Foundation held “3.24 million shares of FTX Trading LTD common stock,” “3.43 million FTT tokens,” and “134.54 million SRM tokens.” Moreover, FTX had purchased 58.08 million SOLs since 2020. Additionally, there was the problem with the Solana software used to manage decentralized exchanges and the web-based Serum protocol. The developers were required to fork the project as FTX held command over the “update key.” The hacker known as “FTX Accounts Drainer” owned the majority (20.28%) of the total Serum supply (SRM). All these elements had a detrimental effect on the Solana Project, and it certainly didn’t help that Solana had experienced outages a month prior to the FTX-related issues.
SOL’s worth dropped 8.5% in past 30 days. As of November 6, 2021, the crypto asset is now 94.99% lower than the US dollar, according to Cryptocompare metrics. 38.5% of SOL trades were against Tether (USDT) on December 16. SOL swaps can be traded against US Dollars at 34.06% and against BUSD, at 17.44%. Coinbase, Binance?, and Digifinex are the most active exchanges for SOL transactions. On November 6, 2021