Tracing Solana’s impressive recovery since FTX-induced FUD

by ChainChirp
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  • SOL greater than doubled in market worth on a year-to-date (YTD) foundation.
  • Bolstered by massive partnerships, SOL’s market depth recovered considerably.

Solana [SOL] was carefully related to FTX’s [FTT] fortunes and the downfall of the crypto change final yr induced severe ramifications for the previous.

Nevertheless, the eighth-largest crypto asset has put the previous behind and launched into a strong restoration path in 2023. After plunging to historic lows within the days following the collapse, SOL greater than doubled in market worth on a year-to-date (YTD) foundation, per CoinMarketCap.

How a lot are 1,10,100 SOLs price immediately

Solana’s strong restoration

Whereas indirectly associated to FTX, SOL was extensively endorsed by the disgraced co-founder of the change Sam Bankman-Fried (SBF). A lot in order that critics speculated that SBF’s campaigning was partly chargeable for the token’s value enhance seen earlier.

In response to crypto market knowledge supplier Kaiko, FTX’s sister firm Alameda Analysis, which was on the heart of fiasco, held a substantial quantity of SOL tokens on its steadiness sheet. Aside from SOL, another small-cap tokens from the Solana ecosystem equivalent to MAPS and SRM additionally had restricted publicity to the hedge fund.

Whereas these much less widespread property have been but to get better to their pre-FTX ranges, SOL beat the highest property of the market like Ethereum [ETH] and Ripple [XRP] in returns on funding weighed in opposition to the danger.

Supply: Kaiko

Notably, with a gentle rise in worth in 2023, SOL’s market depth on exchanges additionally improved. Furthermore, the crypto’s liquidity in native items considerably elevated throughout Q3 2023.

See also  Solana: Can the recent price surge ease FUD around SOL

Kaiko’s report attributed the shift in market sentiment to high-profile strategic partnerships just like the one solid with funds large Visa and Shopify. Such collaborations with the who’s who of the standard finance ecosystem certainly helped in tipping the scales in Solana’ favor.

Having mentioned that, SOL’s restoration was a piece in progress. The present market depth remained considerably decrease than what it was a yr in the past.

Supply: Kaiko

Sensible or not, right here’s SOL’s market cap in BTC phrases

SOL faces headwinds

Solana’s greatest check within the coming days might be FTX’s impending liquidation plan. SOL was FTX’s largest holding, with over 71.8 million tokens within the change’s custody.

If everything of SOL holdings have been dumped out there, the value might fall to lows seen instantly after FTX’s collapse.

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