Despite the fact that Solana (SOL) was receiving a great deal of support coming from FTX’s former CEO, the cryptocurrency’s value has been going in the wrong direction ever since the collapse of the FTX crypto exchange and the arrest of Sam Bankman-Fried, on charges of fraud.
Currently, Solana is trading at $10.02 after falling over 10.25% in the last 24 hours and a further 17.16% across the previous seven days. Solana now has a total market worth of $3.6 billion and is ranked 17th by market capitalization according to CoinMarketCap data as investors move away from buying SOL.
Solana price analysis
Notably, Solana has been following a steady decline chart pattern for the last week, looking “ugly overall in the short/mid term,” especially if it loses the critical area on the Higher Time Frame (HFT) charts indicated by the crypto analyst Altcoin Sherpa on December 26.
The pseudonymous expert, suggested that the likely scenario for Solana in this situation is that it is “probably going to fill the gap and $5 is next up.”
Interestingly, the total value locked (TVL) on Solana has also crashed from $6.68 billion at the start of the year, and currently stands at $209 million as of December 28, per DeFiLlama data.
What’s more, following months of rumors that two of the most successful Solana non-fungible token (NFT) projects, DeGods and Y00ts, would be departing the Solana network, the teams behind the projects finally confirmed the move on Twitter on December 26. DeGods will be moving to the Ethereum (ETH) blockchain, and Y00ts will be moving to Polygon early next year, the team said.
“There’s an argument to be made that [DeGods] has capped out on Solana,” the project’s leader, Rohun Vora, known as Frank, said on Twitter Spaces.
Months of friction on NFT Twitter preceded the move, with several builders in the Solana NFT sector criticising the exodus while the collection’s holders, for the most part, applauded on the move.
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