Solana’s price has been on a downward streak as the FTX scandal continues to evolve. It has plunged by over 50% since the announcement of FTX’s issues. This week only has seen the coin open at the lowest level all week, trading at $12.36, a staggering 95+% compared to its all-time high. At the time of writing, the token is trading at $13.62, according to Tradingview.
Solana had millions worth of assets on the FTX exchange, now inaccessible due to the ongoing events. As per Solana’s statement at the week’s beginning, it had over 3 million FTX Exchange LTD shares, 134.45 million SRM tokens, and 3.43 million FTT shares locked. Since FTX’s cease of withdrawals, Solana has been in a fix.
Related: Solana’s Stablecoin Nirvana drops after a $3.5 Million Flash Loan Exploit
However, some analysts think that SOL’s price plunge will be suitable for the blockchain in the long run. So, where do the crypto community and Solana’s executives stand concerning the ongoing ‘drama’?
Major exchanges delisting Solana tokens
The speculation circulating the media is that Solana’s close relation to Sam Bankman-Fried, FTX’s CEO, is the cause of SOL’s drop. However, the damage is going further than expected, with multiple platforms terminating or pausing trading of several of its tokens. Safe to say, the damage can be crippling for the blockchain amid the current crypto crush.
Whether the current events on crypto exchanges related to Solana’s USDT and USDC result from FTX’s bankruptcy is unclear. Binance is among the first exchanges that suspended both tokens’ deposits and withdrawals on November 17. However, they resumed the services without an explanation. Bybit and BitMEX followed suit, while OKX announced the tokens’ delisting on its platform after suspending all transactions.
According to Circle and Tether, the issuers of USDC and USDT, respectively, there is nothing wrong with the tokens on Solana. However, Circle’s CTO speculated that exchanges are worried about the blockchain’s close ties with FTX and FTX-funded Alameda Research Organization.
Related: Bybit to partner with Circle to offer USDC spot pairs
The blockchain’s take on recent events
Despite the hard times facing Solana, the team declared on Twitter that its ecosystem is still thriving. It is still working to build several projects, including games, NFTs, mobile applications, DAOs, decentralized finance, and more. These steps are especially great for developers within its long-standing community. Notably, its developer activity increases by providing relevant resources to educate its users.
During the Solana Conference, the team announced the 10 ‘hackhouses’ scheduled for 2023. The locations include Istanbul, Mumbai, Melbourne, New York, Austin, Ho Chi Minh City, Berlin, and Tel Aviv, to mention but a few. Anyone wishing to participate can register here.
Generally, the network’s throughput continues to increase as block time decreases. The thread further mentions that its increased decentralization expanded its validation network, running 3621 nodes and over 2160 validators. Also, as of October, it has 11.5 million accounts, despite the shaky year crypto is facing.
These are but a few of Solana’s accomplishments this year, holding more for years to come. SOL is still #14, and the blockchain is among the most robust in the industry.
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