The demise of FTX late last year had widespread repercussions for the crypto industry. Solana is among his victims as DeFi chain activities plummet.
Solana’s on-chain activity hasn’t recovered since FTX’s demise in November. The once-trumpeted “Ethereum killer” appears to have been killed over associations with Sam Bankman-Fried, who backed the blockchain.
According to analytics platform Solscan, Solana’s active wallets have fallen by 60% over the past three months.
Moreover, active wallets on the network have been trending downward since May 2022, long before the FTX crash.
Solana Devi backs off
Solana’s new code accounts showed a similar pattern. It’s also down about 60% over the past three months, according to Solscan.
Furthermore, the number of newly minted SPL tokens in Solana has decreased by more than 80% in the past three months. SPL tokens are fungible tokens on the blockchain based on the Solana software library.
There was also a decrease in non-fungible token (NFT) activity. Aside from a few spikes, steady daily volume of about 30,000 new NFTs in January fell below 10,000 by mid-April, according to Solscan.
Moreover, Solana DeFi is also in a slump. The total value booked in Solana DeFi is currently $519 million, according to DeFiLlama. DeFi TVL is half of what it was before the FTX crash.
In addition, it is down 95% from its all-time high of $10 billion in November 2021. In comparison, the metric of the entire DeFi ecosystem is down 70% in the same period indicating an even larger exodus from Solana DeFi.
A little love for SOL emoticons
Cryptocurrency sweetheart SOL has just dropped out of the top 10 by market cap. Token prices have been slowly recovering over the past month or so, but remain battered from previous highs.
SOL is currently trading at $24 after gaining 6% on the day. Today’s gain is likely due to the FTT token’s rally amid rumors of a possible return of FTX.
However, SOL is still down 33% from its pre-FTX price level. Comparatively speaking, the broader crypto market has recovered all the losses since the SBF stock exchange crash and is now trading higher.
Moreover, SOL is still down 91% from its November 2021 all-time high of $260. The cryptocurrency markets overall are down 58% from peak levels of more than $3 trillion in the same month.
Solana and her original cipher struggle to recover from the epic fallout from Bankman-Fried’s crypto empire.
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