Solana’s ecosystem totally collapses following the collapse of FTX

FTX and Alameda, which appear to be collapsing, are taking Solana’s entire ecosystem down with them, with data suggesting that channel users are now rushing to the exit.

The Solana ecosystem is imploding due to the recent FTX disaster.

At the time of writing, the SOL token is trading for $12.9, down 45% in the last 24 hours, according to CoinGecko data. Blockchain native token Solana is taking a severe beating following the announcement of the insolvency of two of its largest backers, leading crypto-currency exchange FTX and quantitative trading firm Alameda Research, with FTX rumored to have a $6 billion hole in its balance sheet.

According to Solana Compass, an unprecedented amount of SOL tokens are currently being deactivated. The website currently lists 60,399,401 SOL tokens (worth about $755 million at the time of writing) as “deactivated,” meaning that at the start of the next era – in just over 14 hours – these tokens will be unlocked. Solana has a total supply of 533,113,807 tokens (according to CoinGecko). In other words, more than 8.8% of the token’s supply could be dumped into the markets soon.

Meanwhile, Lido’s SOL token, stSOL, is no longer at parity with SOL itself, with the coin trading on for $12.1 on the decentralized Solana Orca exchange – which has the highest liquidity for the token. The price movement suggests that traders are willing to exit their locked SOL positions for SOL for a 6.2% loss, likely in anticipation of the token’s unlocking. The spread between stSOL and SOL will likely increase as the end of the era approaches.

The major pieces of the Solana ecosystem are also in free fall. Serum, Raydium, Solend, Marinade Staked SOL, and Bonfida – all major projects originating in the Solana ecosystem – are down about 53%, 52%, 48%, 60%, and 47%, respectively. The price of Solana’s major NFT collections has also fallen. DeGods, for example, has seen its floor price plummet from SOL 190 to SOL 125 (a 34.21% drop) since yesterday. Trading volumes are also up sharply on Magic Eden in all collections, indicating that traders are panicking and dumping their NFTs in anticipation of further damage.