Solana has been in freefall since the collapse of FTX and has not been able to move up because of the FUD (fear, uncertainty and doubt) that surrounds the ecosystem and its relationship with the former crypto exchange.
According to new newsSolana’s original token SOL has dropped 51.14% since the day FTX fell from grace.
Solana: Dead or Not Dead?
The current situation may be confusing for investors. Based on data by CoinGeko, the token shot up by 5.4% in the past 24 hours which could be a signal that investor sentiment is reversing. However, FUD still remains strong around the ecosystem.
Messiri let go summary of the ecosystem back on December 15. The basic essence of the Summary is that Solana is still a solid ecosystem even after the collapse of the Sam Bankman-Fried-led exchange.
However, new Santiment outlook in the ecosystem indicates that it may have died out.
The most notable on-chain development for these tokens is significant drop in developer activity though many projects developed in the ecosystem.
Although it is difficult to say whether Solana as a whole is dead or close, it is easier to say that the ecosystem is struggling to stay alive because of its close relationship with FTX.
Image: Coincu News
What Does It Mean To Have A SOL
The crypto community seems very bearish at the moment considering what happened in the past weeks from some major macroeconomics news, including a spate of job cuts and bankruptcies by large crypto companies.
Those who are bullish for the ecosystem point to the crash of ETH in 2018 and how the SOL movement mimics this.
For everything sold #ETH in 2018 for 88 USD and for every person who sells $SOL under 10 USD!
Fundamentals have not changed and Solana is not FTX!
Enough said! 🫡 pic.twitter.com/IBYzldEaBd
– MANDO CT (@XMaximist) December 29, 2022
I sent CTself-proclaimed crypto expert, said the above pinned tweet.
Others try argue claims that Solana only blew up with the help of dirty money Bankman-Fried with documents that show SBF supports the competition from Solana.
SOL total market cap at $3.5 billion on the daily chart | Chart: TradingView.com
However, SOL’s price movement reflects investor sentiment about the token – fear, uncertainty, and doubt:
- fear that the ecosystem will surely follow the path of FTX.
- the uncertainty of what 2023 will bring to Solana.
- skeptical about the ecosystem even though many projects are being worked on above.
However, with some great developments like Solana Pay with nearing launch from the mobile phone itself, we can see 2023 being an important part of Solana’s recovery, or a catalyst more than its collapse.
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Featured image: Cryptopolitan