Solana DeFi and NFT values are poor since the demise of FTX
The demise of FTX late last year has had far-reaching consequences for the crypto industry. Solana is among the casualties as activity on the chain and DeFi has decreased.
Solana’s chain activity has not recovered since the demise of FTX in November. The once talked about “Ethereum killer” appears to have been killed due to associations with blockchain backer Sam Bankman-Fried.
According to the analysis platform Solscan, Solana’s active wallets have decreased by 60% in the last three months.
Furthermore, active wallets on the network have been declining since May 2022, long before the FTX collapse.
Solana DeFi Slumps
New token accounts on Solana have shown a similar pattern. They have also decreased by almost 60% in the last three months, according to Solscan.
Furthermore, the number of newly minted SPL tokens on Solana has fallen by over 80% in the last three months. SPL tokens are fungible tokens on the blockchain based on the Solana Program Library.
There has also been a decline in nonfungible token (NFT) activity. Barring a few spikes, a consistent daily volume of around 30,000 new NFTs in January had fallen to below 10,000 by mid-April, according to Solscan.
Besides, Solana DeFi is also in a hibernation. The total value locked in Solana DeFi is currently $519 million, according to DeFiLlama. DeFi TVL is about half of what it was right before the FTX collapse.
Additionally, it is down 95% from its peak of $10 billion in November 2021. In comparison, the value of the entire DeFi ecosystem has fallen by 70% over the same period, suggesting a larger exodus from Solana DeFi.
Little love for SOL tokens
The one-time crypto darling, SOL, has now dropped out of the market capitalization top ten. Token prices have slowly recovered over the past month or so, but they remain beaten from previous highs.
SOL is currently trading at $24 after a 6% gain on the day. Today’s gain is likely to do with the FTT token rising on rumors of a potential return of FTX.
However, SOL is still down by 33% from the price level before FTX. In comparison, the broader crypto market has recovered all losses since the collapse of SBF’s exchange and is now trading higher.
Additionally, SOL is still down a painful 91% from its November 2021 record high of $260. In general, crypto markets are down 58% from peak levels of just over $3 trillion in the same month.
Solana and its native token are struggling to recover from the epic fallout from Bankman-Fried’s crypto empire.
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