Will Solana be able to Recover at All?
Trouble | Behind Scene | Quit Project | Management | What Next
Since the fall of FTX, the issue to Solana has gradually increased. Solana was more interested in FTX. As a result, the price of Solana has dropped by 70–80% in the last 2–3 months. While Solana is unable to ensure stability, even when in debt. The total dump is 95% completed.
Many projects are leaving Solana. Solana’s area, which was once quite active, is now slowly becoming a ticking time bomb.
You must be aware of all of these events before it is too late. What is the current state of Solana, and why is it still falling?
You must have heard a lot of rumors about Solanas on Twitter. FTX is the cause of this condition.
Promote
FTX and Solana were both combined together. The combination of token and exchange provided significant profit to both parties. Any new project received a new user, a large name, and free promotion from ftx. Now is the period when Solana Chain users are limited to those who like Solana Chain. Aside from that, the number of new users has decreased dramatically.
When FTX used to introduce new projects to the market via the exchange, it mostly used Solana’s blockchain. Whether Solana should promote a project, keep it in a token wallet, or need cash, they were both on the same page in many ways.
Sol’s 1% position was on FTX.COM, which held 3.24 million FTX stocks, 3.43 million FTT tokens, and 134.54 million SRM tokens. When FTX departed, Solana’s situation became more difficult. Since November 14th, withdrawals from the FTX exchange have been suspended, and no Solana tokens can be withdrawn.
Stake
FTX and Alameda purchased Sol many times. This purchasing procedure has been ongoing since the project’s commencement in 2020. The good news was that everything FTX had purchased, Solana had staked. As of now, tokens are steadily being unstaked each month.
Alameda Research had purchased a large number of sol tokens.
- 4 million — 31 August 2020
- 12 million — September 11, 2020
- 34.5 million — January 7, 2021
- 7.5 million — February 18, 2021
- 61k — May 17th 2021
You may probably imagine why FTX has so many sol tokens. If we look at this proportion, it is roughly 10–15%. All of these quantities are gradually being released and sold on the market. To repay the creditor, FTX will have to sell the sol token.
Effort
Solana’s developers resumed work on the project after resolving this severe issue. They began putting a lot of emphasis on cooperation, the developer team’s continuous effort, daily updates with new tweets, Discord marketing, and all of these things.
Quit Project
Even after performing all of this, the outcomes were not favorable. Those who were starting to believe in NFT Project Solana are no longer there. Yoots and DeGods were working on two major NFT projects alongside Solana, but both have already left. DeGods selected Ethereum, while Yoots chose Matic.
Both of these projects will be moved in the first quarter of 2023, and the bridge’s specifics will be disclosed after everything is verified. Solana had the finest projects, such as Yoots, DeGods, and MagicEden, but they are now out of their hands. DeGods NFT has a floor price of 790 sol, which equals $8900, while Yoots has a floor price of 215 sol.
DeGods informed Solana that if they gave him $5 million, they would work with him. Solana declined to take part in this deal, but ploygon took advantage of the situation and provided a donation from its collaboration fund. Technical Polygon has purchased these projects and, in essence, adopted them.
Polygon has now beaten Solana
EOS 2.O
Solana is such a huge project that they just didn’t have $5 million to give to the DeGods. You can tell the condition is awful just by looking at it. Many developers have been let go, and it is being renamed EOS 2.O. Eos was likewise a top innovative project at the time, but its situation worsened over time.
Red Flag
If large projects do not wish to stay at Solana, small projects will leave quickly. Take a look at the Stepn project, which was created on the Solana blockchain and is now in its worst state. There is a lack of trust in this situation, which is a red flag. Algorithms, transaction speeds, and fees will all become the standard when their competitors get such advantages.
Any updates from Solana’s management now depend on whether the sol token will be recovered or not. If Solana is to survive, he must do a complete 180-degree shift, working on new developers, marketing, and onchain users, among other things. If it does not succeed, it may become the next EOS.
Interest of People
TVL (Total Value Lock) data is also extremely interesting. It displays the value of the sol token investment. The more people who stake, the more we learn about how many individuals are interested in owning the coin in the long run. Sol’s TVL was approximately 10 billion in the fourth quarter of 2021. However, as soon as 2022 began, its TVL began to plummet rapidly, and in November 2022, 963 million TVL were recorded. Its TVL is still just 213 million as of now. It is apparent that people’s attention is shifting away from this.
Alameda
ALAMEDA is selling its tokens via crypto mixers from wallets, according to new information. Crypto mixers perform the same things that hackers do to sell their cryptocurrency. The 1.7 million fund has been split by Alameda. However, they are purchasing bitcoin by selling their altcoin holdings.
This whole problem has been going on since Sam came out with the nonsense. If you’re wondering how Sam got access to the internet and his wallet, the answer is simple. However, we do not know if Sam is selling or letting this task out. Why are all these wallets open when they should have been locked?
What do you think about Solana, do tell by commenting, will it sustain or go bankrupt?
Disclaimer
This is not a Financial Advice. This article is meant only for educational purpose. I am just sharing my thoughts and analysis based on my many years of experience.