FTX Turmoil Sees Solana TVL Plunging by 32.4%

Altcoins Blockchain Cryptocurrency DeFi Ethereum News Price Analysis Solana (SOL)

Cryptos exposed to Alameda Research, FTX, and Sam Bankman-Fried seem to have suffered the most.

Solana witnessed its total value locked plunging by 32.4% within the past day. That came as the news of FTX callable sent a shockwave in the entire cryptocurrency market. DeFiLlama shows SOL’s TVL dropped to $423.68 million, reflecting a 32.4% decline over the past 24 hours. Meanwhile, that stays far from its ATH (all-time high) at $10.17B on 9 November 2021.

TVL gauges the value of assets locked within a DeFi protocol. Increased total value locked means more tokens deposited in DeFi networks, indicating a bullish bias, whereas dropping TVL confirms investors withdrawing their cash from the platforms for various reasons.

Market-Wide Plummets

The TVL plummeted by up to 51.7% over the previous 24 hours, but slight corrections emerged as of this publication. The SOL-based liquid staking network Marinade Finance saw the highest TVL slump on the chain, dropping to $115.79 million, following a 35.1% dip within the last day.

Other leading protocols on Solana also suffered similar tendencies within the past day. For instance, AMM (automated market maker) Raydium lost 34.25%, liquid staking network Lido dropped 43.13%, and Solend 63.07% down.

Other top blockchains also witnessed plunged TVL within that timeframe, with BSC (Binance Smart Chain) down 9.68%, Ethereum losing 10.59%, and Tron 8.84%. Sam Bankman-Fried founded the Cryptocurrency hedge fund Alameda Research and FTX.

He was among the early Solana investors. Meanwhile, crypto exposed to his firms has suffered the most amidst the current fallout. Also, SOL plummeted massively than its rivals, losing 40.53% over the past 24 hours to $13.38.

The alt saw a brief uptick following the news that Binance could acquire FTX before plummeting after the leading exchange halted the deal, citing regulator investigations and cases of mismanagement of consumer funds.

Meanwhile, Solana Labs co-founder Anatoly Yakovenko emphasized his bullish outlook for SOL, regardless of the latest challenges. He cited the recent blockchain improvements and quality of developers as positive developments in a 9 November tweet.

Meanwhile, the Solana annual conference saw multiple announcements, including the Google Cloud partnership, forthcoming smartphone, and the SOL App Store launch.

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