Solana Continues Its Freefall – Will The FUD Ever Stop?

Christian Encila

Last Updated: March 8, 2023 7:26 am

4 mins read

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Solana has been on a freefall since the collapse of FTX and has not been able to move upwards because of the FUD (fear, uncertainty and doubt) surrounding the ecosystem and its connections with the former crypto exchange.

According to recent news, Solana’s native token SOL has dropped 51.14% since the day FTX fell from grace.

Solana: Dead Or Not Dead?

The current situation might be confusing to investors. Based on data by CoinGeko, the token shot up by 5.4% in the past 24 hours which might be a signal that investor sentiment is reversing. However, the FUD still remains strong around the ecosystem itself.

Messari released an overview of the ecosystem back on December 15. The basic gist of the overview was that Solana is still a solid ecosystem even after the collapse of the Sam Bankman-Fried-led exchange.

However, recent Santiment insight on the ecosystem shows that it might be already dead.

The most notable on-chain development for the token was the significant drop in developer activity despite a lot of projects being developed on the ecosystem.

Although it is difficult to say whether Solana as a whole is dead or near it, it is easier to say that the ecosystem is struggling to keep itself afloat because of its close ties with FTX.

Image: Coincu News

What This Means For Holders Of SOL

The crypto community seems to be very bearish at the moment considering what transpired in the past weeks courtesy of some major macroeconomics news, including the spate of job cuts and bankruptcies by big crypto firms.

Those who are bullish for the ecosystem point to ETH’s crash back in 2018 and how SOL’s movement mimics this.

For everyone that sold #ETH in 2018 for 88 USD and for everyone who is selling $SOL sub 10 USD!

Fundamentals haven’t changed and Solana isn’t FTX!

Just sayin! 🫡 pic.twitter.com/IBYzldEaBd

— MANDO CT (@XMaximist) December 29, 2022

MANDO CT, a self-declared crypto expert, said the above on his pinned tweet.

Others try to refute the claim that Solana only blew up with the help of Bankman-Fried’s dirty money with documents which show SBF supporting competitors of Solana.

SOL total market cap at $3.5 billion on the daily chart | Chart: TradingView.com

However, SOL’s price movement reflects investor sentiment on the token itself – fear, uncertainty, and doubt:

fear that the ecosystem would inevitably follow the path of FTX.
uncertainty on what 2023 will bring for Solana.
doubt regarding the ecosystem despite the amount of projects being worked on top of it.

However, with several big developments like Solana Pay and the nearing launch of its own mobile phones, we might see 2023 to become a crucial part of Solana’s recovery, or a further catalyst of its downfall.

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Featured image: Cryptopolitan

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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