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As the effects of the demise of Fried’s FTX empire began to spread, the crypto cryptocurrency Solana, which was connected to a blockchain supported by Sam Bankman-Fried, fell more than 52% in just one week, taking the lead in the crypto crash.
According to data from CoinGecko, Solana’s market value has decreased from a height of about $80 billion last November to a little over $5 billion. Meanwhile, Ether has decreased by roughly 20%, and Bitcoin by about 19%.
How Was Solana Impacted By The FTX Disaster?
Since the FTX disaster “ate” up all the crypto-linked assets, the cryptocurrency market has shrunk to just $786 billion from $1.02 trillion. NFTs, with its headquarters in Solana, suffered a severe 68% price decline, which reduced its valuation from $424 million to $135 million in a couple of days.
The main factor driving Solana’s NFT pricing down is FTX’s support of the layer 1 Solana solution. SOL’s value fell to $ 12 while FTX dealt with its own showdown. While the FTT controversy damaged the entire ecosystem, including the king cryptocurrency “BTC,” the Solana DEX named Serum’s bankruptcy had a terrible impact (SRM).
Is Solana’s drop paving the way for Cardano?
Making progress in the NFT space are networks like Cardano and Solana, with the latter even announcing a $5 million fund this year to bring creators and their followers into its ecosystem.
Cardano is making strides even though it isn’t approaching NFTs with the same vigour as Solana.
More users joined the platform after smart contracts were added, which raised interest in NFTs on Cardano. But now that Cardano Improvement Proposal 25 has been released, the blockchain’s native coins have a specified NFT metadata standard.
Solana Vs. Cardano
The Solana network attempted to correct Ethereum’s flaws because it could process up to 50,000 transactions per second compared to Ethereum’s 20 transactions per second, its energy-efficient Proof-of-history was revolutionary. Solana is more scalable than Ethereum because of this transaction throughput.
Celebrities are switching from Cardano and Solana, especially now that Cardano has activated the capabilities of its blockchain smart contracts, allowing developers to create and deploy applications to the Cardano blockchain.
Additionally, from a user perspective, Solana is slightly more useful than Cardano because of its proof-of-history approach. Cardano is a project that is being built slowly and is scholarly in tone.
Cardano should benefit from Solana’s crash, but that is not the only factor that will make the altcoin the “Ethereum Killer.”
SBF has consistently demonstrated that he is a strong proponent of the altcoin. As a result, his enterprises had substantial investments in Solana.
Additionally, it was claimed that the trading company held $1.15 billion in Solana and that it sold its cryptocurrency holdings to stop the collapse of FTT, FTX’s token.