Solana has lost several projects to its competitors; however, there appears to be a ray of hope as Vitalik Buterin expresses his support for the blockchain and its ecosystem. Ethereum’s Buterin believes that the network can still get a hold of its operations and get the values back to the list of top 20 cryptocurrencies.
Vitalik Buterin published a Twitter message saying that the chain has a bright future as several opportunistic money people have been washed out. Buterin has established his belief with the team of the developer community that has not left Solana in its tough time.
FTX has triggered a macro fallout in the entire blockchain sphere. Projects are suffering from retaining the trust after FTX reported its liquidity crisis which has now turned out to be a serious criminal offense of fund misappropriation. Solana reportedly had a large portion exposed to FTX, thereby inviting tons of criticism for its current position and future plans.
Solana has to pull up its socks to get out of the, as termed in several reports, existential crisis. Volatility has been a critical factor in the crypto market facilitated only by the downfall of FTX.
No digital currency is registered to be performing up to the acceptable mark. SOL falls in the same league despite leaving the top-20 club of cryptocurrencies. Its value is trading somewhere below $10 for the first time in its two-year history. Approximately 96% of its value has eroded, and the market sentiments are not in favor of its ecosystem.
Buterin’s support surely adds a soft cushion, but it may not suffice to motivate the team enough. Projects that are decentralized have to be added with a trajectory that goes upward for a long time.
Meanwhile, Matrixport has announced to delist of Solana and Solana-U after a large number of projects showcase their intention to leave the network. DeGods has already announced plans to shift to Ethereum. Additionally, yoots are following the trend by transitioning to Polygon.
Market players seem to have lost their confidence in the ecosystem of Solana, especially since the Solana has nothing good for them in the store.
Anatoly Yakovenko, a Co-Founder of Solana Labs, has come forward to clarify that not the entire portion of Solana is exposed to FTX. As a matter of fact, not even the majority of the portion has that exposure. According to an estimate publicly shared by Anatoly, only 4% of the projects have exposure to FTX, while the 80% are in the safe space with no exposure to any fallen crypto exchange.
Not just SOL but SLND and SRM are also down in the market. As a result, co-founder of Solana Labs Anatoly Yakovenko stated that they would not be concerned about price but about developing some decentralized technology for their improved future.