Many people feel that the end of Solana was predetermined because of the intimate relationship that FTX's former CEO Sam BankMan-Fried had with the proof-of-stake blockchain. Due in large part to Fried, who was not only a significant investor but also an advocate for the ecosystem, Solana had quickly become one of the most prominent blockchains during the course of the previous two years.
It was discovered earlier this week that Alameda and FTX possessed 58.08 million SOL tokens, which is over 11% of the entire supply of SOL tokens. This revelation sparked concerns that a dump was imminent. Because of these holdings, Bankman-Fried is now at the core of most of the decentralized finance centered in Solana, which has enraged investors, who have started selling off all of their assets.
On Thursday, it appeared that the problems that Solana was experiencing were only getting worse, when cryptocurrency exchange Binance briefly halted all deposits of USDC and USDT on the Solana blockchain. Earlier, OKX made the announcement that it will stop accepting deposits and withdrawals, in addition to delisting USDC and USDC on Solana. Having said that, in the wake of FTX's application for protection under Chapter 11 of the bankruptcy code, regulators may expand their reach to tokens which had tight relationships with the exchange, which would be a further blow to SOL.
Users Are Told to "Stay Steady," According to the Developers
Nevertheless, in spite of SOL's precipitous decline, developers have been keeping members focused on good milestones in an effort to reinvigorate the waning interest for the network.
On Wednesday, the Solana Foundation announced that it would not sell or transfer approximately 12.5 million SOL that it plans on un-staking over the course of the next two epochs, stating that these coins would instead be "re-staked on new nodes." The announcement came after the foundation stated that it plans to un-stake these coins over the course of the next two epochs. In principle, these activities have the potential to persuade investors that the SOL will not be dumped, so serving as a liquidity buffer against huge sellers.
One of the most significant hosts for Solana Validators, Coinbase Cloud, tweeted on November 17 that "the network has been upgraded to fix the issues that led to previous outages." According to the service, the network had been operating under considerable strain throughout the course of the previous two weeks, which was evidence of the effectiveness of those modifications. A recent tweet revealed that there are now more than 3,700 builders in the Solana ecosystem. The Solana NFT community has been responsible for one of the most significant achievements of 2022. To date, over $3.6 billion in primary and secondary sales have been completed there.
After a drop of 1.67% in the previous day and a drop of 94% from its all-time high, SOL was trading at $13.42 on the market. According to data provided by CoinMarketCap, the total value of SOL's market cap dropped from almost $80 billion in November 2017 to just under $5 billion today.
