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Solana’s FTX trouble failed to impact this SOL segment growth but is it enough

19 Nov, 20222 min readOther
Solana’s FTX trouble failed to impact this SOL segment growth but is it enough
  • Solana gets impacted by the FTX debacle; Sollet-wrapped tokens also get affected
  • Solana’s Project Serum gets forked; however, the community continues to show an interest in Solana’s NFTs
  • One of the major cryptocurrencies that was impacted by the FTX debacle was Solana [SOL]. Factors such as the Project Serum and Sollet-wrapped assets played a significant role in increasing Solana’s exposure to the FTX collapse.

    1/ What is the impact of the @FTX_Official fallout on @solana with FTX Group (FTX +Alameda)’s ties to the ecosystem?Explore:+Impact on @ProjectSerum & resulting fork+Sollet-wrapped coins+Declining SOL price on @solendprotocol lending positions+Solana DeFi moving forward 🧵 — Messari (@MessariCrypto) November 18, 2022

    Read Solana’s [SOL] price prediction 2023-2024

    Solana’s total value locked (TVL) depreciated by 30% after the FTX saga unraveled. One reason for the FUD around Solana was Project Serum, the central order book on the backend of almost every non-AMM piece of the Solana DeFi ecosystem. An unknown entity held the upgrade keys for the Project Serum at FTX, which caused panic among the SOL community.

    Fortunately, changes were made quickly. Project Serum was forked and the chances of being vulnerable to a hack were reduced.

    Another aspect of Solana that was impacted was the Sollet-wrapped tokens. As can be seen from the image below, soBTC, which was supposed to be pegged to BTC, was unpegged over the last few days. This was due to the FTX/Alameda issued Sollet-wrapped assets, and as the news of FTX’s failure spread, soBTC was affected negatively.

    Other Sollet-based assets, such as soETH, faced similar issues.

    Despite the FUD surrounding SOL…

    …the asset continued to witness growth in the NFT space.

    As per the image below, Solana’s blue chip NFT floor price witnessed a significant spike over the last few weeks. This would indicate that people from the crypto community still showed interest in major Solana NFTs.

    The overall Solana NFT trading volume also witnessed a significant increase. According to data from Solana Floor, since 1 November, Solana’s NFT trading volume went from 183,000 all the way to 66,000 at the time of writing.

    However, SOL‘s stakers did not lose faith in Solana. As evident from the image given below, the number of stakers increased by 0.15% and stood at 576,000 at press time.

    SOL was trading at $12.87 at the time of writing. Its price had depreciated by 5.83% in the last 24 hours, while its volume witnessed depreciation, falling to 45.56% during the same time period, according to CoinMarketCap.

    Source

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