Solana has been in freefall because the collapse of FTX and has been unable to maneuver higher as a result of FUD (worry, uncertainty and doubt) surrounding the ecosystem and its connections with the previous crypto alternate.

After latest informationSolana’s native token SOL is down 51.14% because the day FTX fell out of favor.

Solana: Lifeless or not useless?

The present scenario could possibly be complicated for traders. Based mostly on knowledge from CoinGeko, the token has shot up 5.4% over the previous 24 hours, which could possibly be a sign that investor sentiment is popping. Nevertheless, the FUD nonetheless stays sturdy across the ecosystem itself.

Messari revealed a overview of the ecosystem again on December fifteenth. The rationale behind the assessment was that even after the collapse of the alternate run by Sam Bankman Fried, Solana continues to be a strong ecosystem.

Nevertheless, newer Santiment perception on the ecosystem signifies that it might already be useless.

Probably the most notable on-chain growth for the token was the vital decline in growth work regardless of many tasks developed on the ecosystem.

Whereas it is exhausting to say if Solana as an entire is useless or shut, it is simpler to say the ecosystem is struggling to remain afloat as a result of its shut ties to FTX.

Picture: Coincu Information

What does this imply for holders of SOL

The crypto group appears to be very bearish in the intervening time contemplating what has occurred over the previous few weeks on the again of some main macroeconomic information, together with the spate of job cuts and bankruptcies of main crypto corporations.

These optimistic in regards to the ecosystem level to ETH’s 2018 crash and the way SOL’s motion is mimicking it.

For everybody who offered #ETH for $88 in 2018 and for everybody promoting $SOL underneath $10!

The basics haven’t modified and Solana isn’t FTX!

I am simply saying! 🫡 pic.twitter.com/IBYzldEaBd

— MANDO CT (@XMaximist) December 29, 2022

MANDO CTa self-proclaimed crypto professional mentioned the above to his pinned tweet.

Others attempt refute the allegation that Solana was blown up solely with the assistance of Bankman-Fried’s soiled cash, with paperwork displaying that SBF helps rivals of Solana.

SOL Complete Market Cap at $3.5 Billion on the Every day Chart | Chart: TradingView.com

Nevertheless, SOL’s value motion displays investor sentiment concerning the token itself – worry, uncertainty and doubt:

• fEar that the ecosystem would inevitably observe the trail of FTX.
• Uncertainty about what 2023 will convey for Solana.
• Doubts in regards to the ecosystem regardless of the quantity of tasks constructed on it.

Nevertheless, with a number of main developments equivalent to Solana cost and the shortly earlier than the beginning of his personal cell telephones, we might see 2023 turning into a vital a part of Solana’s restoration or one other catalyst for his downfall.

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Featured Picture: Cryptopolitan