Data provided by Santiment shows that blockchain developers are moving away from altcoin projects linked to FTX and Alameda. Decreasing development activity is followed by sharp price drops.
Blockchain developers move away from this altcoin project, price drops
After the bankruptcy of FTX, especially the Solana (SOL) ecosystem was shaken by the news of delist and rug-pull one after another. However, Solana’s current situation shows hesitation in its developers as well as investors. According to the current data provided by Santiment, there has been a significant drop in development efficiency. Amid dwindling development activity, the SOL price also dropped below $10. The analytics firm updates Solana’s current status in their December 28 analysis:
Solana is now down 73 in the last 8 weeks. FUD is strong against the once thriving project, but there seems to be a pretty good reason for development activity to come to a standstill.
? #Solana is now down 73% in the past 8 weeks. The #FUD is strong toward the once thriving asset, but there appears to be some pretty good justification with development activity coming to a halt. Read our take on what metrics are pointing to for $SOL. ? https://t.co/P7AnKYfKYN
— Santiment (@santimentfeed) December 28, 2022
The SOL price tumbled 80% after the FTX and Alameda bankruptcies in November. A large part of the sales came from individual investors who became aware of the companies’ fraudulent transactions. SOL price is now trading below a psychological support level of $10. It has lost more than 10% at one point today. Behind the sales were the news of the separation of the recently emerged delist and NFT projects.
Meanwhile, Twitter’s Altcoin Sherpa suggested that the possible scenario for Solana is “probably to fill the void and $5 is next.” Interestingly, the total value (TVL) locked in Solana also fell from $6.68 billion at the start of the year. According to DeFiLlama data, it currently stands at $209 million as of December 28.
Why does the left (LEFT) fall?
cryptocoin.com As we have reported, the cryptocurrency exchange Deribit and 2 major NFT projects have recently decided to leave the Solana network. Deribit announced on December 26 that it will remove some Solana products from December 30.
#Deribit will cease offering Solana INVERSE products ?
1/4
? After the upcoming 30 December 2022 expiry, Deribit will not list new Solana inverse options or futures.#Solana #OptionsTrading pic.twitter.com/OLfp3Ikrmp— Deribit (@DeribitExchange) December 25, 2022
With the Delist news, the 2 largest Solana-based NFT projects also want to migrate to the Ethereum network. The NFT projects behind the decision were DeGods and y00ts. However, Solana’s appearance continues to drift in the dark as there are no fundamental changes to the project’s roadmap. According to many crypto investors and analysts, it is unclear how it will behave in 2023. A large number of large projects are currently trying to switch to alternative networks. Existing projects are stopping some of their operations and the largest marketplaces. The Solana ecosystem no longer sees new entries like MagicEden.
