Crypto altcoin Solana, which was supported by Sam Bankman-Fried, plummeted more than 52% in 1 week, making a dent in the crypto market as the aftermath of Fried’s FTX scandal continued to reverberate. Solana’s market value has dropped from a high of $80 billion at the beginning of November this year to nearly $5 billion, according to CoinGecko data.
“If we look at the performance of Solana, it has slipped by 95% from its all-time high in November 2021. The recent developments at FTX have rattled the crypto market which is pushing investors away from riskier assets. The market is anticipating that Alameda research could offload its entire SOL holdings which is its second-largest holding after FTX,” said Tarusha Mittal, COO and Cofounder of UniFarm, a group staking platform.
Solana co-founder Anatoly Yakovenko tweeted that development company Solana Labs didn’t hold any assets on FTX and had enough financial runway for around 30 months.
Mahin Gupta says, “The FTX fiasco has surprisingly caught Solana, dragging it down further to its current state. Since earlier this year’s hack, SOL has been working hard to stabilize itself. FTX’s Solana-based decentralized exchange (DEX) Serum was also down by 53% recently. Some of the assets, like wrapped BTC on the Solana DeFi ecosystem, were backed by FTX, which now has almost zero value. The Solana assets and other assets in the ecosystem will be volatile in the near future. FTX and its founding team were big backers of the Solana ecosystem. $SOL is the second-largest holding of Alameda Research after FTT, which is why Solana is facing this crisis,”