Solana price continued its sell-off as concerns about its exposure to FTX continued. Other tokens associated with the company like Aptos and Near Protocol continued their sell-off as well. SOL was trading at $9.43 on Thursday, which was significantly lower than its November high of $40. At its peak, Solana was trading at $260.
FTX exposure and ecosystem risks
Solana is one of the biggest blockchain networks in the world. It is an Ethereum rival that is known for its faster speeds and low transaction costs. The network has been used to build some of the best-known Web3 projects like Brave Browser, Step’N, and Solend.
Solana is one of the biggest players in the NFT industry. Data published by CryptoSlam shows that the network handled $70 million worth of NFTs in November even as the crypto sell-off continued. It handled NFTs worth about $64 million in December. Still, this is a significantly lower figure than its all-time high of $303 million.
Solana is also well-known in the DeFi industry where it powers platforms like Marinade Finance, Orca, Credix, and Raydium. At its peak, Solana had over $10 billion in total value locked (TVL). Today, this amount has plunged to just $250 million because of the collapse of Serum.
Serum was the biggest DeFi platform in its ecosystem. It collapsed after revelations that its public key was held by FTX, the exchange that collapsed in November. As a result, most people with assets in Serum sold them.
Solana price has also crashed after on-chain data showed that many holders have started to sell the coin. This is important because FTX and Alameda Research were among the biggest holder of the coin. In a report on Thursday, it was revealed that Alameda had sold millions of Ether tokens in for Bitcoin.
Solana price prediction
The daily chart shows that SOL price has been in a strong bearish trend in the past few months. This sell-off accelerated after the collapse of FTX and Alameda Research. Consequently, the coin remains below all moving averages while oscillators continued falling.
Therefore, the outlook of Solana price is bearish, with the next key level to watch being at $5. A move above the resistance point at $20 will invalidate the bearish view.
