The trading price of Solana (SOL) has been taking a huge hit ever since the year 2022 has begun. However, the situation has taken the worst turn for Solana ever since the FTX exchange crashed.
The strong ties the Solana blockchain had with the FTX exchange came biting the network. To this day, the entire network is being haunted by the crash event of the FTX and the Alameda Research platforms.
Solana Investors are concerned
SOL, which is the Solana blockchain’s native token, is once again under a great amount of pressure. It has happened after a very long time that the trading price of SOL has suffered a major plummet.
In the recent trading sessions, the trading price of SOL has fallen below the $10 benchmark. This is the first time since February 2021 that the price of SOL has been pulled below a particular level.
The dip came as the trading price of SOL experienced an over 10% dip in the Wednesday trading session.
The recent trading session has only extended the losses that the Solana network has been facing since the FTX crash.
Although the majority of the major cryptocurrencies have faced huge losses ever since the FTX crash took place, Solana has faced the worst fall.
Since November 7, when the crash took place, the trading price of SOL has experienced a 70% dip. This has resulted in many investors pulling out of their investments in digital assets.
Solana has been stripped of many statuses and achievements since the FTX crash that it had earned over the years. The network is now on the verge of breaking down while the investors are still hopeful it will rise again.
Why SOL Price is declining?
The trading price of SOL has been facing major losses since November. However, the FTX crash is not the only negative factor pulling SOL’s price other factors are also impacting the token.
The other major negative factor impacting the trading price of Solana is the projects that are determined to leave the Solana ecosystem.
Many projects have shared their intentions of leaving the Solana blockchain. They fear that the FTX crash may end up extending its contagion to the Solana ecosystem.
If that happens, their projects will end up taking a lot of damage and lose the reputation they have built over the years.
Two Major NFT Projects are jumping out of Solana Ecosystem
Although several projects have started to leave the Solana blockchain, two major projects seem to have resulted in a major void for SOL.
Both projects are part of the non-fungible token (NFT) industry, the most thriving segment within the cryptocurrency industry.
The NFT projects that are leaving the Solana ecosystem are y00ts and DeGods. The projects confirmed that they are jumping the Solana ship and moving to different networks.
The officials at DeGods have confirmed that they are moving to the Ethereum blockchain. On the other hand, the officials at y00ts have announced that they are moving to the Polygon blockchain.
Alameda Wallets are Dumping Cryptocurrencies
The other factor is somewhat linked with the FTX crash as it involves the trading platform owned by Sam Bankman-Fried, Alameda Research.
It has been reported that the cryptocurrency wallets that were locked on the Alameda Research have become active all of a sudden.
One thing worth mentioning here is that the wallets became active just a day after Sam Bankman-Fried was released on a bond worth over $240 million.
It is being claimed that it is someone from the inside that is carrying out the sale of the USDT, BTC, ETH, and more cryptocurrencies stored on the Alameda Research wallets.
With the funds moving out of the Alameda Research platform, the investors are once again angry with the protocol. The anger of the investors may extend to Solana and a selling spree may come into being.
In such a case, the trading price of SOL may start moving in a negative direction.
