- Solana TVL tends to show its downside.
- SBF’s FTX tremors shake the Solana ecosystem.
- But still investors have a positive gut feeling in SOL.
The Rapid Collapse In Solana Blockchain
Total Value locked (TVL) goes low at 31.69% on the Solana blockchain, as the news of FTX’s crumble impacted it beneath the ground.
According to the DefiLlama, at the time of reporting, Solana TVL has declined to $427.98 million, down by 31.69% in the past 24 hours. SOL has fallen from its record level high of $10.17 billion as on November 8,2021.
TVL is one of the major indicators to help estimate the value of a smart contract protocol.The increase in TVL shows that more coins are stored in huge volumes inside the Decentralized Finance (DeFi) protocols.Whereas declining TVL implies that investors are withdrawing coins from the ecosystem due to some or other reasons.
One of its protocol Marinade Finance in the category of liquid staking is now reduced to $109.3 million of approx 22.81% in the last 24 hours.Also, Dexes protocol of same platform, Raydium have reacted adversely to 19.65% drowning to TVL $60.87 million.
Major decline in TVL is also noticed in prominent blockchains during recent times, such as Ethereum (8.21%), Tron (6.88%), and Avalanche (14.36%).
FTX Pulls Leg
The crypto billionaire Sam Bankman-Fried, founder of crypto trading firm Alameda Research and crypto exchange FTX, was one among the initial investors of “Ethereum Killer”. Cryptos in relation to SBF’s companies are also in the news because they were on the verge of complete collapse.
At the time of writing,SOL price has slumped severely in comparison to others in the list. Its price had decreased to $13.98 which is approx 16.98% in the last 24 hours.
As per the news reports, crypto entrepreneur Bankman’s wealth has “Fried” from $15.6 billion to $1 billion. According to DefiLlama, Alameda Research has also invested in several Solana-based projects. This indicates that it is the most popular chain at Alameda.
Berlin-based crypto exchange, Swarm’s co-founder, Philipp Pieper stated “There are lots of bets against SOL being taken right now, but this does not feel justified from a technology perspective, Solana was technically interesting even before Bankman-Fried discovered it.”
In midst of challenges faced by the crypto, its co-founder, Anatoly Yakovenko has shown positivity inspite of consistent losses. His tweet caught the eye of a few news agencies. On 9 November,2022, he tweeted- “ I said this on stage at Breakpoint just a few days ago – the builders on Solana are second to none, and the projects they’re building can often only be built on Solana.”
However, crypto veterans presented their gut feeling that “Ethereum killer” can smack down the hell of the crypto winter.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/11/11/ftx-shock-waves-affects-solana-tvl/