•Solana has been on a downward trend since the FTX crypto exchange collapse, losing more than 20% in the last 7 days.
•The network had risen quickly due to the funds injected by Sam Bankman-Fried, but with those gone, it has struggled to stay afloat.
•Matrixport announced it would be delisting all Solana tokens from its platform, further exacerbating the downward trend.
The digital asset Solana has been on a depressing downtrend ever since the FTX crypto exchange imploded. The asset had already lost a massive chunk of its all-time high value, but things have only gotten worse in the last seven days, with Solana’s price dropping into single-digit territory. The losses align with the general bear market trend being experienced in the crypto sector, but the downfall of the digital asset is being accelerated by the collapse of FTX, which had been its biggest supporter.
Sam Bankman-Fried, the founder of FTX and Alameda Research, had invested a lot of money into the Solana ecosystem, boosting the network’s growth and development. However, with all of that money gone, Solana has been unable to sustain its progress, leading to its current state of decline. Furthermore, according to James Spediacci’s Twitter, a large portion of the value locked in the Solana blockchain at its peak was allegedly faked. He cites a report from CoinDesk that claims that SOL stablecoin exchange Saber, and DeFi protocol Sunny, two major players in the Solana ecosystem, were operated by the Macalinao brothers. With these players gone and no new money being injected into the ecosystem, Solana has been left to fend for itself.
Unfortunately, things have only gotten worse, as Matrixport recently announced it would be delisting all Solana tokens from its platform. This move is sure to further exacerbate the downward trend of Solana’s price, as it removes a key source of liquidity for the asset.
It’s clear that Solana is in for a tough road ahead. With no new money being injected into the network, and major players in the ecosystem like Matrixport delisting it, it looks like the asset is set for a long period of decline. The only hope for Solana is that the crypto sector as a whole rebounds soon, allowing the asset to recover some of its losses.