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Many cryptocurrency witnessed their lows following the broader crypto market met with bad omen given various reasons. Solana (SOL) was an example of such a crypto asset that grabbed attention as once the top cryptocurrency slipped lower and continued to decline. The decrease went on rapidly after the FTX collapse and now there are concerns that not only the investors rather developers might also leave the project.
Not a long time ago SOL was in the top crypto assets which now has dropped below even the second memecurrency Shiba Inu. The consistent drops are being said to be the result of FTX’s founder and former CEO, Sam Bankman-Fried’s support for Solana (SOL) token. Given SBF’s negative image following the crypto exchange fall, its being implied that Solana might have got the effect.
The aforementioned could be the immediate reason but it’s struggling for a relatively longer time due to the outages that crypto assets witnessed for couple of years. For non-fungible tokens also the blockchain network emerged as a potential contender. This brought it to the top position in terms of largest NFT markets second after Ethereum network.
DappRadar data suggest that Solana based NFT marketplace, Magic Eden holds fourth biggest position in terms of trading volume. This draws the picture that although the price movement of SOL is in negative growth, it still has hold over the NFTs in the market.
Another important source of support that the SOL network continued to have was the developers. They continued to be operational shortly after the cryptocurrency crash, but it is now unknown whether they are still operating more than a month after FTX filed for bankruptcy. Is Solana losing its development?
The number of active Solana software engineers dropped by more than 90% in 2022, according to data aggregator Terminal Token. It is true that this proportion has received a lot of attention because it signifies the exodus of 2,425 developers from the network of smart contract platforms. Additionally, it shows that the cryptocurrency network would have lost appeal even without the FTX crash.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
