According to Tradingview data, Solana ( SOL ) fell below the $10 mark today, and was quoted at $9.65 before the deadline, a drop of 11.56% in the past 24 hours, and a drop of 20% in the past 7 days. This is the first time since February 2021 that SOL Falling below $10, SOL hit a high of $260 in November and has plummeted more than 96% since then.
Solana plunged again on fears that large holders may be about to sell Solana. Martin Lee, a data reporter at blockchain research company Nansen, pointed out that due to Solana's close ties to FTX founder Sam Bankman-Fried (SBF), people's confidence in Solana's future has generally been hit.
DeGods, an iconic NFT project on the Solana chain, just threw a shock bomb on the 26th, announcing that it will be bridged to Ethereum in the first quarter of next year. The second-generation project y00ts launched a few days ago will be bridged to Polygon simultaneously. - Tokens will also be deployed on Ethereum and Polygon.
According to DefiLlama data , the total value locked (TVL) on the Solana chain has dropped sharply, from nearly US$10.2 billion on November 9, 2021, to US$228 million today, a drop of nearly 98%. Ranked 11th in the chain TVL leaderboard, even losing to Cronos, Mixin and other projects.
Is the death spiral a foregone conclusion?
After FTX’s thunderstorm last month, Solana, which is closely related to SBF, collapsed by more than 66% within 4 days due to panic. According to Coindesk, it seems that SBF’s strong support for Solana’s funds is more and more likely to be From the massive theft of client funds through FTX.
In addition, company executives, including former Alameda CEO Caroline Ellison, have all accused SBF of encouraging the manipulation of FTX’s FTT token price in their confessions to the prosecution. Considering this, SBF may also have manipulated the Solana ecological project The price of the tokens he helped launch, took massive positions, and used the accounting and lending frauds that formed the core of FTX’s fraud.
Further reading: Ex-Alameda CEO's "Guilty Plea Clause" Exposure: Cooperate with investigation or avoid criminal prosecution, except for tax violations
Alameda’s market manipulation funds are actually obtained by secretly diverting FTX customer funds from other assets such as BTC and ETH to Solana or related ecosystem token transactions. At present, Alameda’s market making and trading activities generally appear to be Extremely unprofitable. Some critics argue that their SOL activity amounts to propping up the value of Solana while artificially depressing the prices of cryptocurrencies like ETH and BTC.
Now, as developers and project parties scramble to escape Solana, the chaos has led to something like a death spiral, the report said.
