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No Blockchain than Solana has been Hit Harder by the FTX Fallout, Is its End Imminent or Could Make a Comeback?

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No Blockchain than Solana has been Hit Harder by the FTX Fallout, Is its End Imminent or Could Make a Comeback?

Over the past 2 years, the Solana network has rapidly risen to be one of the largest blockchains by both market cap and usage. The growth was largely driven by Sam Bankman-Fried who was both a massive investor and voice of the entire ecosystem. The FTX & Alameda were connected to Solana in 4 ways, 

  • The SOL token
  • Solana DeFi
  • Ecosystem investments
  • Parts of Solana treasury

FTX & Alameda owned nearly 58.08  million SOL tokens, or 11% of the total supply. Meanwhile, SOL price has dropped more than 50% in the past seven days, but it is not clear how much of this has been dumped by FTX compared to the other investors. 

Apart from SOL, Solana DeFi also has been a hard hit as the TVL has tanked from $10.17 billion in November to $327 million at the moment. Alongside, Serum, the top DEX on Solana launched by SBF also dropped heavily along with other projects like Magic Eden & Phantom. 

Mainly, a critical issue with the Solana DeFi is its wrapped token assets. The soBTC & soETH dumped heavily as they both were backed by collateral on FTX. Lastly, the Solana Foundation had some direct exposure of its treasury to FTX. They have $1M in assets stuck on FTX before withdrawals were paused. They also hold 3.24M common shares of FTX trading & 3.43 million in FTT. Unfortunately, both are heading towards $0. 

The Aftermaths of the Impact!

In a recent update, Tether announced the moving of 1 billion USDT from Solana to Ethereum without changing the total supply. 

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In few minutes Tether will coordinate with a 3rd party to perform a chain swap, converting from Solana to Ethereum ERC20, for 1B USDt. The #tether total supply will not change during this process.
Learn more about chain swaps ⬇️https://t.co/abfgnELSvi

— Tether (@Tether_to) November 18, 2022

Tether said that it will conduct a chain swap to move 1 billion USDT from Solana to Ethereum to reduce the total amount of circulating supply on Solana. binance binance [email protected] Centralised Exchange had earlier suspended USDC & USDT from Solana but quickly resumed them, while okex okex Centralised Exchange delisted both on Solana & stopped accepting deposits & withdrawals. Meanwhile, Circle confirmed the normal functioning of USDC on Solana. 

Will Solana Bounce Back or Left to Meet its End?

Undoubtedly, the situation for solana solana Blockchain Network is extremely bad at the moment. However, it does not definitely mean that it’s time to write off Solana. Here are the possible reasons why the network could bounce back finely.

  • Large Treasury
  • Strong Developer Community
  • Thriving NFT ecosystem
  • High network activity

Collectively, we are still in the early stages of cryptocurrency, and thus, it is too early to predict whether the Solana ecosystem will die or not. The SOL price and the entire ecosystem may revive similarly to what Ethereum did back in 2018.  

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Assessing what’s next for Yearn Finance (YFI) as we gear up to close Q4

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Assessing what’s next for Yearn Finance (YFI) as we gear up to close Q4

  • YFI suffers a bearish divergence that indicates a decline in buying momentum.
  • Sellers take control of the YFI market during the intraday trading session.

Despite the growth in the price per Yearn Finance (YFI) token, the count of daily active addresses on the network continues to fall, data from Santiment revealed. 

As of this writing, YFI traded at $7,027.16. In the last week, its price went up by 7%, per data from CoinMarketcap.


Read Yearn Finance (YFI) Price Prediction 2023-2024


With just 248 unique addresses involved in YFI transactions at press time, the number of daily active addresses that have traded the alt has fallen consistently by 41% in the last week.

Source: Santiment

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YFI’s price and the count of its active addresses moving in opposite directions create a bearish divergence that precedes a price drawdown. 

Likewise, a price/trading volume divergence was spotted on a daily chart. As YFI’s price rallied by 3% in the last 24 hours, its trading volume fell by 25% within the same period.

This was an indication of exhaustion among the current buyers in the YFI market and marked a potential re-entrance point for sellers. As a result, new demand would be required to drive up the alt’s price further.  

However, data from Santiment showed that new demand for YFI has declined since the beginning of the month. As of this writing, 59 new addresses were on the YFI network. In the last eight days, this has fallen by 48%. 

Source: Santiment

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Day traders are not smiling 

An assessment of YFI’s performance on a 4-hour chart revealed that sellers had control of the intraday market. Selling pressure rallied as daily traders shied away from accumulating the alt.

At press time, the dynamic line (green) of YFI’s Chaikin Money Flow (CMF) rested below the center line to return a negative value of -0.07. A fall of an asset’s CMF below the center line usually indicates that the token’s distribution rate exceeds its accumulation rate within a specified period. A negative CMF is an indication of weakened buying pressure.

Furthermore, the Relative Strength Index (RSI) was spotted at 48.97 in a downtrend. Stationed below the 50-neutral region facing south, selling pressure rallied as more buyers exited the YFI market. Likewise, its Money Flow Index (MFI) was pegged at 45.85 at press time.

The position of the Directional Movement Index (DMI) confirmed the strength of YFI sellers during the intraday trading session. 

The sellers’ strength (red) at 23.67 was solidly above the buyers’ (green) at 16.03. Additionally, the Average Directional Index (ADX) showed that the seller’s strength was a difficult one that buyers might find impossible during the day’s trading session.

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Source: TradingView

Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.

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Uniswap NFT volume declines by a great margin, but here’s the catch

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Uniswap NFT volume declines by a great margin, but here’s the catch

  • Uniswap witnessed a decline in NFT volume lately.
  • This decline affected other areas of the DEX, including the count of unique users and overall transactions.

All eyes were on Uniswap during the launch of their NFT protocol. There was growth observed on multiple fronts due to this launch. However, according to data provided by Dune, it appeared that the hype around Uniswap had started to decline, at press time. 


                                  Read Uniswap’s Price Prediction 2023-2024


Short-lived hype

From the image below it can be observed that the NFT volume on Uniswap declined over the past few days. The daily volume for the NFTs traded on Uniswap went from $246k to $32k since its launch.  The number of daily transactions for the same decreased from 445 to 35, at the time of writing.

Source:Dune Analytics

This decline in NFT activity has impacted the DEX negatively. According to Messari,’s data, the number of unique users on Uniswap had fallen by 9.7% and the number of overall transactions being made on the DEX had declined by 28.87% in the last seven days.

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Furthermore, in the image below, it can be seen that after the spike caused by the NFT launch, the daily active addresses for UNI declined. Along with that, UNI’s transaction count and velocity also took a hit. 

Source: Santiment

Interestingly enough, these indicators did not deter whales from investing in UNI.

According to WhaleStats, an organization dedicated to tracking crypto whales, Uniswap had been amongst the top 10 most purchased tokens by the top 1000 Ethereum whales.

This spike in interest can be credited to the increase in active developers on the Uniswap system. 

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The ongoing actions in the NFT space may result in interest being regenerated and it could reflect onto UNI’s positive price action.

Source: token terminal

That said, at the time of writing, UNI was trading at $5.96 and its price had increased by 0.91% over the last 24 hours, according to CoinMarketCap.

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot’s writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S – There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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Layer 2 networks see jump in dApp migration; the reason might surprise you

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Layer 2 networks see jump in dApp migration; the reason might surprise you

  • dApps have increased migration to layer 2 networks.
  • Arbitrum continues to lead as the layer 2 network with the highest TVL

Gas fees spent by layer 2 (L2) Ethereum scaling solutions to settle proofs on Ethereum have clinched an all-time high as decentralized applications (dApps) native to layer 1 networks increase migration to L2s, a new report from Messari showed. 

L2 networks are separate blockchains that extend the functionalities of the Ethereum network and inherit the security guarantees of Ethereum. Transactions are executed on these L2s and then batched up to the base layer, Ethereum. 

To settle proofs of these batched-up transactions on Ethereum, L2s are required to pay gas fees for the network’s security. 

Therefore, as more applications and their users migrate to these L2s, ramping up the number of transactions processed and batched, the amount paid as gas fees to settle proofs by L2s has also rallied to an all-time high.

For example, in September, leading NFTs marketplace OpenSea announced support for leading L2 network Arbitrum. In the same month, the cryptocurrency trading platform Matcha, confirmed its deployment on Arbitrum. Likewise, in October,  leading Ethereum [ETH] staking platform Lido Finance announced its launch on two L2 networks, Arbitrum and Optimism. 

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Arbitrum takes the lead

According to data from L2Beat, with a total value locked (TVL) of $2.30 billion, Arbitrum ranks as the top L2 platform in today’s market. 

Source: L2Beat

Due to its Nitro upgrade launched in August, Arbitrum “can support 7-10x higher throughput and has advanced compression techniques that allow for cheaper transactions, which attracts more activity,” Messari found.

This upgrade has led to a significant surge in the number of daily transactions processed on the L2 network.

Source: Delphi Digital

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Furthermore, as FTX’s unexpected collapse eroded investors’ trust in centralized cryptocurrency exchanges, many investors moved to decentralized exchanges. 

This contributed to Arbitrum’s growth in the last month, as GMX, a “decentralized exchange (DEX) for perpetuals native to Arbitrum and Avalanche, experienced a significant volume increase during the FTX fiasco,” Messari reported. 

On 7 November, GMX logged $5 billion in margin trading volume, a 75% rally from the previous day.

Following FTX’s implosion, DEX tokens have been outperforming CEX tokens over the past week:

📈 DEX +26% vs. #BTC
📉 CEX -2.5% vs. #BTC pic.twitter.com/NBkLxNBBOb

— Delphi Digital (@Delphi_Digital) November 17, 2022

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Not far behind

Optimism has also benefitted from the increased migration of dApps to L2 in the past few months. Messari found that in the last three months, the count of transacting addresses on the network rallied by 120%. 

Source: Messari

Per data from Etherscan, the network saw its highest daily number of transactions (499,720) on 9 November in the heat of the FTX saga. 

Source: Optimism Etherscan

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Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.

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