Solana blockchain activity remains high despite FTX exchange’s Chapter 11 filing

• The Solana blockchain continues to see high activity despite an estimated 50 million SOL tokens locked in bankrupt crypto FTX.
• A research report from Citigroup Inc reveals a sharp reduction in the circulating supply of Solana, while active addresses and daily NFT volume remain high.
• The SOL price is eyeing the $20 target after making nearly 25% gains over the past week.

Solana blockchain activity remains high despite concerns about 50 million SOL held by bankrupt crypto exchange FTX. Active wallet addresses on the Solana network have increased, along with a rise in daily NFT trading volume.

Also read: Peter Schiff Urges Bitcoin Holders to Sell BTC Above $19,000 After Bullish Start of Cryptocurrencies in 2023

The Solana network’s active addresses and activity remain high against all odds

Solana, an Ethereum alternative, has recently been titled “Sam coin” after Samuel Bankman-Fried (SBF), the founder of the bankrupt cryptocurrency exchange, FTX. SBF was an active proponent of the Solana ecosystem’s original token SOL. After the FTX exchange’s collapse and bankruptcy, Solana was hit by a massive reduction in daily active addresses and NFT trading volume.

The SOL price dropped from $37 to $13 in a five-day period between November 5-10, 2022. As the Ethereum killer struggles to wipe its losses from the FTX collapse, SOL’s price has climbed to $17, and the token’s daily calculations active addresses and the NFT trading volume has completed the recovery. Both metrics have returned to levels last seen before the collapse of SBF’s crypto exchange platform, according to Citigroup Inc’s recent report.

The fact that an estimated 50 million SOL tokens are locked up on the bankrupt crypto exchange currently going through Chapter 11 proceedings has dampened the circulating supply of SOL tokens acting as a further price pump. The total supply of SOL tokens is currently 538.38 million, of which 9.2% is locked on the Bankman-Fried bankruptcy exchange.

The increase in key figures back to pre-FTX levels is being interpreted as a consolation among users on the Solana blockchain.

Solana price looks for the $20 target

@CryptoGodJohn, a cryptocurrency analyst and trader told his 437,200 followers on Twitter that the expert is waiting for a flush of the $20 level in Solana. The SOL price has gained almost 73% in the last two weeks, since the beginning of 2023. The altcoin has risen despite sideways price movements in Bitcoin and Ethereum in the first week of January 2023.

SOL/USDT perpetual futures contracts

Johnny identified three key levels in the Solana price chart above, at $17.48, $18.80 and the $21.51 target. Yet. The expert believes SOL may first plunge to $14.26 and gather liquidity before the next leg up.