Solana is having trouble in the wake of this week’s FTX fallout. The SOL price is also taking a battering, and the network is showing signs of weakness yet again.
The Solana native token SOL has dumped around 24% over the past 24 hours or so. This is twice as hard as the rest of the market but not as bad as FTT, which has lost 75%.
It appears that anything connected to Sam Bankman-Fried and his FTX exchange is taking a beating right now.
The SOL price has plummeted from an intraday high of just over $30 to its current price of $20.78, according to CoinGecko. Furthermore, the embattled token is currently down 92% from its November 2021 all-time high of $260. It has also tumbled out of the crypto top ten rankings.
Solana Whales Facing Liquidation
Solana whales are going into liquidation as their SOL positions are getting hammered by the price crash. On Nov. 9, Wu Blockchain pulled up one example. It showed one whale with 2.4 million SOL worth just over $51 million in collateral get hit with a debt of $44.8 million USDC. The liquidation threshold for that particular address was $43 million.
CNBC crypto trader Ran Neuner observed the Solana exodus. On Nov. 9, he commented:
“Market realizing that @cz_binance now owns 10% of the tokens and that he would rather support BNB chain than SOL.”
The industry analyst added that Solana and its ecosystem have just lost the investments that SBF and FTX were making.
To make matters worse, the Solana blockchain is suffering performance issues yet again. On its status dashboard is the notice: “The Solana network is currently experiencing degraded performance.”
Colin Wu said that the congestion was due to oracles updating, which doesn’t help those using the once-touted “Ethereum killer.”
The last major outage on Solana was in early October, when the network went down for about 8 hours. Solana has had outages, network instability, or degraded performance in January, April, March, May, June, and October so far this year. They are likely to get worse if the big bucks backing it are to be pulled.
FTX Fallout Cripples Solana Price and Crypto Markets
The Solana price isn’t the only one suffering at the moment. Crypto markets have shed 6.3% over the past 24 hours knocking total capitalization down to $955 billion.
More than $150 billion has left the space since the weekend highs, which topped $1.1 trillion. Bitcoin has tanked to $18,400, and Ethereum has returned to support around the $1,300 level.
Despite the rapid bleed out, markets remain within their range-bound channel. However, further losses could break below support to new bear market lows.
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