Is Solana S.O.L. (S*** Outta Luck)?
It appears that the crypto crowd has developed a fairly unanimous negative opinion toward Solana in recent days. Many assets took hits over the past month and a half, especially those linked particularly to FTX and Alameda, like REN and SNX.
But Solana's price took a particularly massive hit just a couple days prior to the FTX implosion news happening, and there was some very likely tampering going on within the exchange, based on recent reports. Since November 5th, SOL's price has dropped 73%. As of the hour I'm writing this, its market price has just dropped below $10 for the first time since February 22nd, 2021:
Check out how shorts (negative bars) in this below chart were just salivating over Solana's downfall these past few days. And as soon as Binance's funding rate turned positive in recent hours and traders tried to long the heavily retracing asset, a -8% nearly instant price plummet really caused some liquidations in a hurry:
The FUD toward SOL is obvious. And barring fundamental issues, scams, or development ceasing, usually FUD toward a project can be considered a positive. But James Spediacci put together a comprehensive thread on Twitter yesterday explaining the extensiveness of how bad things are looking, fundamentally, for the once top 10 market cap asset:
Citing several articles from reliable sources, it does appear that Sam Bankman-Fried and FTX had a heavy hand in Solana thriving the way it did throughout the market-wide bull run in 2021.
Among James' thread, he also points to this CoinDesk article, written in August, that mentions how Saber (a stablecoin exchange built on top of Solana) and Sunny (a DeFi app) made up an estimated $7.5 billion of Solana’s $10.5 billion TVL at their peak. And as of August, they were gone.
It's also mentioned that developer activity was essentially faked via artificial identities. Good thing for us, Santiment can easily gauge development activity for 2,500+ assets at our fingertips and see . Let's see if James and Coindesk are correct:
Looks like they're spot on. Certainly not a good sign for the once thriving asset in 2021.
Other glaring issues point to trading volume being at year-low levels, and this asset just doesn't seem to have a lot of signs pointing to any "light at the end of the tunnel". Although nothing is a guarantee in crypto, probabilities point to SOL being a tough asset to have an argument for hanging on to at this time.
For this reason, I have submitted this as an "NFT Battle Insight" by clicking the respective button at the bottom of this article when publishing.
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Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.
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