In the middle of an already challenging year, the FTX crash has made things much more tough for Solana, and many in the cryptocurrency industry seem to believe that the project will ultimately fail.
Throughout the course of the year, Solana had a number of problems and became unsteady when used often. Users complained that the platform was too centralized, which caused the SOL price to change whenever there was a problem with the network.
To invest in Solana initiatives, FTX and Alameda Research fraudulently obtained and used client funds. As a result, all of the money has been lost, and the user experience will be most likely permanently tarnished.
The price of Solana suffered a significant dip only a few days before the FTX collapse news broke, indicating that there was quite possibly some meddling going on inside the exchange. SOL’s price has decreased by 73% since November 5th.
At the time of publication, one token is worth $9.98, reflecting a decrease of 10.41% over the course of the last 24 hours and 17.6% over the course of the past seven days. It’s important to note that SOL hasn’t traded for less than $10 since February 2021, therefore the current situation is rather concerning.
Projects Keep Leaving Solana
In a turn of events that should not come as much of a surprise, stacks of projects have started leaving Solana.
Both the DeGods NFT art collection and the Y00ts NFT collection stated on Twitter on the 26th of December that they will be severing their links with the ecosystem in favor of Ethereum and Polygon, respectively.
The spread of fear, uncertainty, and doubt (FUD) around SOL is, quite honestly, completely justified.
And provided that there are no fundamental problems, frauds, or a halt in development, FUD directed against a project is often something that may be regarded as good. Solana’s reputation has been significantly tarnished as a result of FTX, yet it may not be irreparably damaged.
It is important to note that in 2018, the Ethereum ecosystem was hit by a similar issue, which caused its value to drop by more than 90 percent; yet, the currency would eventually reach new highs. There are often unexpected breakthroughs in the cryptocurrency market, and so 2023 might see Solana making a comeback… or not.