After FTX went down, things got a lot harder for the Solana blockchain platform. In the last 8 weeks, investors and FTX’s sister company Alameda Research have sold off a lot of SOL, the platform’s native token.
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This has caused the price of SOL to drop by 73%. Projects and validators that work with NFTs are moving to other blockchains. Here’s what on-chain data says about Solana and SOL in the face of rising FUD.
Solana’s star fades as FUD grows.
On-chain analytics platform Santiment said in a tweet on December 28 that the FUD on Crypto Twitter about Solana has been getting worse over the past few days. Solana’s reputation in the crypto market has taken a big hit because of its ties to FTX and Alameda. It caused the price of SOL tokens to drop 73% since November 5.
On-chain data shows that Binance’s funding rate turned positive on December 27, and traders were planning to buy the asset SOL that was going through a lot of retracements. But because so many people sold their SOL in just a few hours, the price fell by more than 10%. As some crypto analysts predicted, the price of SOL hit a low of $9.91 today.
Solana Was Hurt
Solana was hurt a lot by the bear market, which caused several blockchains to stop, exploits to happen, and developer activity to stop. The top NFT projects on Solana, DeGods and y00ts, recently said they would move to Ethereum and Polygon, respectively. DappRadar says that the top two NFT collections on the Solana blockchain are DeGods and y00ts.
According to DeFiLlama, Solana’s TVL has dropped from $10 billion to $210 million in just one year. Data from Santiment shows that developer activity has also dropped a lot.
The price of SOL could fall more.
At the moment, the price of Solana (SOL) is $9.97, which is down 10% in the last 24 hours and 18% in the last week. The 24-hour low is $9.91 and the 24-hour high is $11.21.
Price of SOL
Even though the price of SOL has gone down in the last 24 hours, trading volume has gone up by 167%. This shows that sentiment has gone down. Technical indicators show that the price of SOL is going down and predict that it will drop to $8.20. Also, the rally might not last long if the price of SOL breaks above the $10.50 resistance level.
Source: Google Trend