According to recent reports and chart analysis from Defillama, Solana DeFi is down by 98% from its initial whooping $ 10.17 billion mark. This sharp decline has been majorly linked with the FTX demise as SBF, FTX’s former CEO, now termed the biggest fraudster in history, strongly backed Solana’s native token, SOL. The collapse of the exchange is now posing severe consequences for Solana.
Causes behind Solana’s $SOL’s demise and impending extinction
The demise of solana has brought many remarks from the crypto community. Eric wall mainly mocks solana in a Twitter thread because so many individuals had faith in the token.
Solana TVL dropped by 98%
— Eric Wall | OP_😺 (@ercwl) December 26, 2022
Additionally, according to Spediacci, several reasons led to this plunge. According to him, the primary reason was that one of the greatest scams in history supported Solana. James asserts that people were interested in investing in this standard blockchain because the media depicted SBF as a kid prodigy wunderkind. SBF now faces life in jail and is in disgrace.
Reasons why Solana $SOL is dead and going to zero
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1/ Solana was backed by one of the biggest frauds in history. The media portrayed him as a boy genius wunderkind, which made people want to invest in this average blockchain. Now he is disgraced and facing life in prison. pic.twitter.com/gdw2JJYrJ1
— James Spediacci (@jspediacci) December 27, 2022
James adds that the primary factor behind everything that worked on Solana was FTX’s fraud and theft of client monies for Solana projects. As per James, all that money is gone, and FTX will always be connected adversely with Solana.
He later asserts that the prominent supporters of both FTX and Solana, Multicoin Capital, also suffered a severe setback. This comes after their infamous 2017–18 wager on EOS.
He adds, “the SOL price is trending to zero, so you can feel the LP redemptions.”
Is Ethereum the way now that Solana is crumbling?
Because of the development of Layer 2 technology and the ongoing network disruptions afflicting Solana, James believes, some projects have chosen to build on or return to Ethereum. This also comes after the two most significant NFT projects on solana reportedly switched to Ethereum.
“Every path returns to Ethereum.” He concludes
Amid the fact that numerous famous people received payment to serve as spokespersons for FTX and promote Solana, it is now apparent that Solana was a component of FTX’s complex con that was utilized to support the FTX/Alameda Ponzi scheme. James also affirms that all along, Ethereum was the genuine deal.
