Ever since the FTX and the Alameda Research crash took place, almost every major cryptocurrency has continued facing a downtrend.
Investors have continued to lose their trust and confidence in the cryptocurrency market. This has taken a huge toll on the overall situation of the crypto industry.
Although every major cryptocurrency has taken a hit due to the FTX crash, they have not lost its rank in the crypto market as per valuation.
Solana is facing a Difficult Situation
Unfortunately, things have not been the same Solana (SOL). This is because Solana found itself to be on the FTX brand’s side when the crash took place.
The Solana blockchain had a strong connection with the FTX exchange as well as the founder of the brand, Sam Bankman-Fried (SBF).
Therefore, the native token on the Solana blockchain, SOL ended up taking the worst fall among all major cryptocurrencies.
Following the FTX crash in early November, the value of SOL has continued declining and to this point, its value has dipped tremendously.
Solana May Lose its Rank
There is a great fear among investors that if the downtrend continues, the value of the asset may end up losing its rank among the top cryptocurrencies.
As of now, Solana is ranked among the top 20 cryptocurrencies with respect to its market valuation. There was a time when Solana was ranked among the top 10 cryptos by market valuation.
It reportedly competed with several major cryptocurrencies such as Dogecoin, ShibaInu, Binance Coin, and many more to find a higher rank.
Now, the situation is completely opposite as SOL may end up losing its position among the top 20 cryptocurrencies.
Relation with FTX
The Solana blockchain was launched back in 2020 and among the supporters was Sam Bankman-Fried. After the launch, the blockchain had to generate funds in order to expand its network and business.
For this purpose, a major funding round had been organized that was backed by Sam Bankman-Fried. Therefore, Solana was thankful to FTX and SBF for their contribution and built a strong relationship with the platform.
Unfortunately for the Solana Foundation, as the FTX crash took place, the network ended up losing its entire credibility. It has taken the blockchain time to regain some of its lost reputations.
Still, things have not fully recovered for the Solana Foundation and its native token continues to take a hit.
Prior to the FTX crash, the trading value of SOL was at a high of $34.5 and at the time of writing, the value of SOL is at $12.4. This shows that the trading price of SOL has dipped by 64.05% since the FTX crash.