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Nearly every major cryptocurrency is in the red this week after crypto exchange FTX <\/span>revealed its liquidity crunch<\/span><\/a>\u2014and it\u2019s getting worse now that Binance has <\/span>opted not to rescue the firm<\/span><\/a>. And outside of <\/span>FTX\u2019s own FTT token<\/span><\/a>, no top crypto is taking it harder right now than <\/span>Solana<\/span><\/a>.<\/span><\/p>\n Solana (SOL) has fallen 60% over the last seven days to a current price of under $13 per token, according to data from <\/span>CoinGecko<\/span><\/a>, including a 45% plunge over the past 24 hours.<\/span><\/p>\n Since news of FTX’s liquidity issues broke on Tuesday morning, Solana has lost over half of its value\u2014about 57%. Now key founders of the blockchain network are attempting to salvage fading enthusiasm around the space as the ecosystem suddenly finds itself embroiled in crisis.<\/span><\/p>\n \u201cWe launched in 2020 after markets crashed and the world went into lockdown\u2014chewing glass is in our DNA, and we’ll get through together,\u201d <\/span>tweeted<\/span><\/a> Solana co-founder Anatoly Yakovenko earlier today, echoing comments made at last weekend\u2019s Solana Breakpoint conference while highlighting Solana\u2019s recent and upcoming technical improvements.<\/span><\/p>\n During an appearance last month on <\/span>Decrypt<\/span><\/i>\u2019s gm podcast, <\/span>Yakovenko said<\/span><\/a> that he expected this year\u2019s Breakpoint conference to have a different tone than in 2021, when SOL\u2019s price was skyrocketing. Ultimately, Breakpoint brought a number of major announcements and SOL rose early during the event, but shed those gains on Monday ahead of the FTX bombshell.<\/span><\/p>\n The bleeding hasn\u2019t stopped. No cryptocurrency in the top 100 (ranked by market cap) has lost more value this week outside of FTT, which has shed 91% amid confirmation of an FTX liquidity crisis. Binance said Tuesday that it had signed a non-binding letter of intent to acquire FTX, but today revealed that it <\/span>would not complete the deal<\/span><\/a> due to the extent of FTX\u2019s financial problems.<\/span><\/p>\n this crucible moment for @solana<\/a> ecosystem is as difficult as the last one. the difference is, there are 10x more of us to band together this time. next time, there will be 10x more.<\/p>\n and each time, we’re stronger. the fundamentals are better.<\/p>\n same goes for crypto at large, tbh<\/p>\n \u2014 raj 🖤 (@rajgokal) November 9, 2022<\/a><\/p>\n<\/blockquote>\n<\/div>\n Raj Gokal, another Solana co-founder, described the FTX fallout <\/span>earlier today<\/span><\/a> as a \u201ccrucible moment\u201d for the ecosystem that is \u201cas difficult as the last one.\u201d<\/span><\/p>\n \u201cThe difference is, there are 10x more of us to band together this time. Next time, there will be 10x more,\u201d Gokal suggested. \u201cEach time, we’re stronger. The fundamentals are better. Same goes for crypto at large, [to be honest].\u201d<\/span><\/p>\n Solana has now shed 95% of its value since reaching an all-time high price of $260 this time almost exactly one year ago, when the wider crypto market was hot. This week\u2019s downturn follows months of wider market struggles and macroeconomic pain, and the FTX fallout appears to be taking a toll on builders and investors alike.<\/span><\/p>\n <\/p>\n FTX and founder and CEO Sam Bankman-Fried (SBF) had long been associated with Solana, having invested in the project through his Alameda Research company. SBF, a billionaire before the FTX collapse, also <\/span>once famously pledged<\/span><\/a> to buy an investor\u2019s entire stash of SOL when it was still only priced at $3 per coin. \u201cSell me all you want. Then go fuck off,\u201d SBF tweeted in January 2021.<\/span><\/p>\n Yakovenko <\/span>tweeted today<\/span><\/a> that Solana Labs, the U.S. company that represents the founders and core builders behind the network, had no exposure to FTX. He added that the company\u2019s funds are held in dollars, and that \u201ctons of runway\u201d\u2014about 30 months\u2019 worth based on current burn rate. \u201cLearned our lessons in 2018,\u201d he added, alluding to that year\u2019s crypto market crash.<\/span><\/p>\n Still, Solana\u2019s well-known link to FTX and its founder appears to be accelerating its downturn so far this week, and the damage could quickly accelerate. <\/span>Over 56.3 million SOL<\/span><\/a>\u2014about $729 million worth, at present\u2014is currently set to be unlocked from staking overnight, and a large amount could be dumped onto the market, driving the price down even further.<\/span><\/p>\n 1\/ $ETH<\/a> holding up remarkably well, while $SOL<\/a> is forging its soul, purging all but the most committed.<\/p>\n \u2014 Chris Burniske (@cburniske) November 9, 2022<\/a><\/p>\n<\/blockquote>\n<\/div>\n Although key players in the space\u2014such as <\/span>top marketplace Magic Eden<\/span><\/a>\u2014are attempting to motivate and unite builders with positive tweets and affirmations, there\u2019s a lot of uncertainty and fear spreading across the ecosystem. Some are even considering a move away from Solana.<\/span><\/p>\n On Tuesday, Frank\u2014the pseudonymous creator behind two of Solana\u2019s biggest <\/span>NFT<\/span><\/a> projects, <\/span>DeGods<\/span><\/a> and <\/span>y00ts<\/span><\/a>\u2014tweeted that he was looking into bridging his collections over to <\/span>Ethereum<\/span><\/a>. He was <\/span>quickly criticized<\/span><\/a> by other builders and collectors in the Solana space, and ultimately deleted the tweets, but said that his NFT holders have been asking for such a move.<\/span><\/p>\n\n
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