• The native token of the Solana blockchain, SOL, plummeted to under $10 for the first time since February 2021 on Wednesday, dropping 10% intra-day and extending its losses since the abrupt collapse of Sam Bankman Fried’s FTX/Alameda crypto empire in early November to roughly 70%.
• Blockchain watchers pointed out on Wednesday that Alameda wallets have become active once again, just a few days after Sam Bankman-Fried was released from jail on bail, and ERC-20 tokens are being dumped and funds are being moved into blue chip cryptocurrencies like ETH, BTC and USDT.
• Price predictions for SOL remain highly pessimistic and traders are speculating that SOL tokens might also be getting dumped.
The native token of the Solana blockchain, SOL, has experienced a significant and unexpected dip in value in the recent days. On Wednesday, SOL slumped to under $10 for the first time since February 2021, dropping 10% intra-day and extending its losses since the abrupt collapse of Sam Bankman Fried’s FTX/Alameda crypto empire in early November to roughly 70%. This sudden decline has led to a wave of pessimism and speculation among traders, with many wondering if the token could fall further, even as low as $3.
The cause of this sudden price drop has been traced to a series of events in and around the Solana blockchain ecosystem. Two of Solana’s top non-fungible token (NFT) projects, DeGods and y00ts, recently announced that they are jumping ship to build on the Ethereum and Polygon blockchains. This shift of projects away from SOL has been a major blow to the platform and has raised questions about its future.
At the same time, blockchain watchers have noted that Alameda wallets have become active once again, just a few days after Sam Bankman-Fried was released from jail on bail. It is believed that funds are being moved into blue chip cryptocurrencies like ETH, BTC and USDT, with some funds moving via transaction destination obscuring instant exchangers. This activity is seen as further evidence that SOL tokens may be getting dumped, as traders speculate that Sam Bankman-Fried is behind the dumping of tokens.
The future of SOL remains uncertain, with price predictions remaining highly pessimistic. The token has already dropped significantly in the past few months and there is no indication that the decline will stop any time soon. It is impossible to say for certain whether SOL will drop to $3 or even lower, but it is clear that the future of the Solana blockchain is looking increasingly uncertain.