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Solana takes a Sauna as it sweats to find ground amid the cryptocurrency turmoil

Solana (Crypto coins) lost 60% of its market value in the last seven days largely due to the fall of cryptocurrency exchange FTX. Add to that the overall downward spiral of the global cryptocurrency market. “Solana (SOL) has slipped by 95% from its all-time high in November 2021. The cryptocurrency market is hoping that Alameda research, the cryptocurrency trading house would offload its entire Solana holdings which is its second-largest holding after FTX,” Tarusha Mittal, COO and co-founder, UniFarm, a group staking platform, told FE Blockchain.

It is to be noted that SOL is a layer-1 blockchain that is meant to facilitate smart contracts for crypto-related financial services. According to Rajagopal Menon, vice president, WazirX, a crypto exchange company, Solana could make technical changes to its token economy to reduce FTX’s impact. “Solana has shown signs of bullish divergence between its price and relative strength index (RSI),” he added.

Source: TradingView

Furthermore, data from CoinGecko, a digital currency price and information data platform revealed that Solana’s market value has fallen from a peak of almost $80 billion last November to just over $5 billion. “Buying the dip in any kind of asset is a personal choice and depends on the risk appetite of individuals. Investors may consider guaranteed returns of cryptocurrency investment products in times of high volatility and cryptocurrency staking is one such option,” Shubham Gupta, co-founder, and chief product officer, STAN, noted.

Also Read: Need of the hour to regulate cryptocurrency in India; says the industry

Meanwhile, Solana co-founder Anatoly Yakovenko tweeted that the development company Solana Labs does not hold any assets on FTX and has enough financial runway for around 30 months.  “The long-term prospects of SOL cannot be underestimated as the mass adoption of decentralised finance (DeFi) will thrive on Solana and other similar blockchains,” added Mittal.

Also Read: Crypto market in ‘red’ after Binance pulls out of FTX-deal

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