• Solana has been on a downtrend since the implosion of the FTX crypto exchange, losing more than 20% of its value in the last 7 days alone.
• The collapse of FTX, the asset’s biggest supporter, has caused a lack of faith in the digital asset and put added pressure on its price.
• Investigations have revealed that much of the dev activity on the Solana network was faked and that the Macalinao brothers controlled 70% of the total value locked on the Solana blockchain at its peak.
The digital asset Solana has been on a steady decline since the collapse of the FTX crypto exchange. The asset has lost a significant amount of its all-time high value, with its losses in the last seven days alone amounting to more than 20%. This downtrend aligns with the general bear market trend in the cryptocurrency sector, but the lack of faith in the digital asset brought about by the FTX implosion has put additional pressure on its price.
Investigations by CoinDesk have revealed that much of the development activity on the Solana network was faked and that the Macalinao brothers controlled 70% of the total value locked on the Solana blockchain at its peak. This was largely due to the massive amounts of funds that were funneled into the Solana ecosystem by FTX CEO Sam Bankman-Fried and his Alameda Research firm. With all of this money gone and no new money being injected into the ecosystem, the digital asset has had a hard time staying afloat.
Further compounding the issue is the fact that Matrixport has announced that it will be delisting all Solana tokens from its platform. This has had a major impact on the liquidity of the asset, further dragging its price down.
The future of Solana is uncertain at this point, but one thing is for sure: the digital asset has been hit hard by the collapse of FTX and is in desperate need of some new sources of support if it is to have any chance of recovering. With the crypto market in a state of flux, it remains to be seen if Solana will be able to ride out the storm or if it will succumb to the bear market trends.