Solana is suffering as activity has plummeted following the FTX collapse. Its native asset, SOL, is also looking extremely weak at the moment.
On Dec. 15, DeFi and web3 research firm Yield App Labs reported on the sorry state of the Solana network.
“Despite the community showing resilience, the network itself is struggling,” it stated. The once touted ‘Ethereum killer‘ is now practically dead in terms of on-chain activity.
It added that the daily total moved on-chain for Solana is down a whopping 98.8%.
On-chain volume averaged around $65 billion per day at the beginning of September. It has now slumped to a daily average of just $742 million per day, according to data from The Block.
Slumping Solana Statistics
Additionally, daily Solana transactions have decreased from around 35 million in September to around 18 million today. Transactions have slumped up almost 50% in just three months. Comparatively, Ethereum transactions have fallen by roughly 16% over the same period.
Furthermore, daily active wallets on-chain are down 59%, the report added. Solana averaged around 852,000 daily active wallets at the beginning of September, and that figure has fallen to roughly 364,000 active wallets. Additionally, new daily addresses on the network have almost halved over the past couple of months.
Decentralized finance (DeFi) on Solana is also a dead duck. The total value locked has crashed from $1.4 billion to around $400 million since the beginning of September. The 70% slump has added to the epic crash from its $10 billion all-time high TVL in November 2021, according to DeFiLlama.
Yield App Labs concluded that concerns over developer retention are mounting:
“There are concerns surrounding Solana’s long-term competitiveness on a technical level, and there are worries if the dev and user communities will choose to remain on Solana for the coming months and years in the bear market following the FTX fiasco.”
It added that the removal of the FTX and Alameda baggage could result in a more decentralized and equitable network.
Price Outlook
Solana’s native coin has been battered along with its network. SOL lost 2% on the day and was lulling around the $14 level at the time of press.
The coin has lost more than 60% since the FTX collapse in early November. Meanwhile, the rest of the crypto market has recovered slightly and entered a phase of consolidation.
SOL prices are now down a whopping 94.6% from their lofty peak of $260 in November 2021.
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