- Nearly $100 million worth of SOL is to be unstaked in the next 24 hours which could lead to major dumping of the altcoin.
- Amid FTX’s collapse, Project Serum, a liquidity infrastructure hub built by FTX on Solana is facing a major crisis.
Ever since the FTX crisis unfolded, the altcoin Solana (SOL) has faced severe trashing amid massive dumping in open markets. Over the last week, the SOL price has tanked by nearly 60 percent. Earlier today, Solana (SOL) tanked to its new 2022-low of $12.32, however, it has recovered partially since then.
As of press time, SOL is trading 3.5 percent up at a price of $14.30 and a market cap of $5.6 billion. However, this year’s market correction has eroded 90 percent of SOL’s value as Solana investors lost $45 billion in total. But SOL could face a further crash here onwards due to a major unstaking taking place.
Popular crypto analyst @MartiniGuyYT said: “ANOTHER 6.6 MILLION #SOLANA ($93,610,892) TO BE UNSTAKED AND DUMPED IN 24 HOURS”. Besides, he also provided proof for the same.
Source: It’s just a fact, its funny how many people in the comments don’t believe this is true
You risk being giga rekt if you don’t listen pic.twitter.com/TAOv45C0gs
— That Martini Guy ₿ (@MartiniGuyYT) November 13, 2022
Although the contagion of FTX collapse has spread across the crypto market, altcoin Solana (SOL) has suffered the most among its peers. The reason is before the FTX crisis unraveled, FTX/Alameda was holding a very large quantity of SOL tokens worth almost $1.2 billion. Some of these positions would surely belong to the massive SOLs that were unstaked recently.
Also, seeing the magnitude and speed of the SOL price collapse, there’s every possibility that while some SOLs have been liquidated, there’s still enough left to be dumped.
Solana’s DeFi TVL collapses, FTX’s Serum project in distress
Just as the price of Solana’s native crypto SOL collapsed, the platform’s DeFi TVL has also collapsed by 50% over the last week. For the Solana blockchain, DeFi has been the major driver of on-chain activity. Thus, the collapse in Solana’s DeFi TVL is certainly not a good sign for the platform.
Also, Project Serum, a liquidity infrastructure hub built by FTX on Solana is facing a major crisis. As trust in the FTX ecosystem collapses, Project Serum’s liquidity engine is also running dry. Amid the FTX crisis, the price of the native token of Serum aka SRM has tanked by 66 percent over the last week.
Last weekend, DeFi protocols on Solana started unplugging fast from Serum. Besides, the developers associated with Project Serum have also turned silent. Speaking to Bloomberg, a Solana spokesperson said:
Developers attached to Serum split off the project’s code in a so-called fork amid concern that an upgrade key controlling the program could be compromised.
Thus, DeFi developers are now rushing to create a new version of Serum that will run without the influence or interference from FTX. Technically, Serum was controlled via a community vote by the holders of SRM tokens. But industry players believe that Serum’s decentralized autonomous organization (DAO) had little authority over the protocol.
Multiple sources in Solana DAO said that Serum ultimately became a money tree for other protocols to secure their token grants. Citing information from independent contributor Morrell, CoinDesk said:
Projects wanting to integrate with Serum would first suss out their proposal’s viability with major SRM holders and then pitch the community forum. Proposals that made it to a vote would usually pass with the backing of a single whale: a wallet that started with “Cuie.” That wallet was controlled by Alameda.
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