Solana is a blockchain-based platform designed to achieve high-speed transactions and low gas fees. In this article, we will discuss, "Will Solana Recover? What was The Reason of Solana's Crash?" Let's get started.
What was The Reason of Solana's Crash?
- The FTT coin collapse and the FTX exchange turmoil had an impact on the whole cryptocurrency market, but Solana was particularly hard hit. On November 9, Solana's TVL was above $620 million, but by November 13, it had fallen to just $342 million. Significant instability for Solana and platforms connected to Solana followed FTX's collapse. One of the largest crashes occurred when the SOL token's price dropped below $20 and Solana's total market cap dropped out of the top 10 positions.
- Solana Foundation has 3.24m shares of FTX Trading LTD. 3.43 million FTT tokens and 134.5 million SRM tokens are held by the Solana Foundation through the Bankman-Fried-founded decentralized exchange (DEX), Project Serum.
- Lending and borrowing platform Solend, running on the Solana blockchain saw the value of its assets dropping from $280 million on Nov. 2 to under $30 million now.
- On account of FTX Fallout, Solana DeFi suffered over $700M in value wipe out.
- The situation for Solana has gotten worse since DeGods and yOOts left.
- Finally, Solana's biggest problem has been that it has had significant collapses as a result of both network outrages and declining market conditions.
Will Solana Recover?
Solana will keep increasing at the beginning of this year because several competitors with much weaker use cases are currently priced more favorably. Second, with the US set to bounce back and China pursuing full herd immunity, things may be in Solana's favor for the time being.
Will Solana Recover? What was The Reason of Solana Crash? - Hopefully, this article can help you to get some knowledge.
