Solana TVL drops 66% within in a week as FTX implosion affect ecosystem

November 12, 2022 9:05 pm

Layer 1 network Solana, one of Ethereum’s major competitor, has seen the total value locked on its chain plummeted 66.23 percent within a week, as FTX-related drama heavily affected Solana’s ecosystem and thus its token price.

According to on-chain data tracked by Defi Llama, Solana so far is the 12th largest chain for Dei activities, with a total value locked (TVL) standing at $341.63million, a far cry from its all-time high of $10.17 billion on Nov. 9, 2021.

The FTX collapse has not just tanked the price of FTT, FTX’s native token, but any token relevant to FTX CEO Sam Bankman-Fried and his companies.

It is no surprise that Solana was heavily affected because it is one of Bankman-Fried’s biggest investments.

As FTX’s liquidity crisis was taking place, the price of the solana token tanked 68% to $12.

 Among some of the top Solana blue-chip collections, the DeGods floor price fell 66% to $2,700, Solana Monkey Business 68% to $2,000 and y00ts 70% to $840.

As Solana being heavily affected by the FTX debacle, Solana community and Crypto peer Twitter expressed sympathy and hopes that its ecosystem can make a comeback.

Polygon co-founder Sandeep Nailwal encouraged Solana supporters to keep building, while Nicholas Chen, the co-founder of blockchain explorer Solana FM, also make commitment to support for the community.