FTX Bankruptcy Is Now One-Year Old
It’s onerous to imagine it’s been a complete 12 months because the surprising collapse of crypto alternate FTX. Loads has modified within the crypto world since then, however most cryptocurrencies have been comparatively much less risky because the complete debacle ended, save for the latest bull run in October.
Solana, one of many cryptocurrencies intently tied to FTX’s Sam Bankman Fried, took a significant beating within the aftermath. However Solana has now regained its footing up to now month, because it lastly begins to maneuver past the FTX chapter shadow.
How Has Solana Fared Since FTX Chapter?
FTX filed for chapter in November 2022 following a protracted interval of again and forths that rocked the cryptocurrency markets. Sam Bankman-Fried was an enormous supporter of Solana, backing initiatives in its ecosystem.
FTX additionally had an enormous stash of Solana in its stability books earlier than its chapter. In keeping with CoinGecko, FTX is one among Solana’s largest holders, with roughly 55.8 million SOL, virtually 10% of the whole provide.
As one of many largest holders of Solana’s native token, FTX’s collapse despatched SOL reeling. Many buyers had anxious FTX’s points may spill over to Solana’s ecosystem.
The crypto was already down greater than 87% in November 2022 from its all-time excessive of $260. SOL was buying and selling round $32 on the time rumors got here out of FTX’s insolvency however plunged to $11 inside days of the alternate’s chapter announcement.
SOL market cap at $25 billion right now. Chart: TradingView.com
Since then, SOL has been on a light motion. The crypto discovered a backside round $9.98 initially of the 12 months and has climbed steadily since. It spent many of the 12 months buying and selling between $23 and $27 from January to October.
Cash Flows In
Nonetheless, issues modified in the midst of October, as the entire trade witnessed an influx of cash. This rally was largely partly attributable to Bitcoin’s surge in anticipation of the approval of spot Bitcoin ETFs within the US.
Solana is now buying and selling at $59.98 and is up by 501% from its January backside of $9.98. FTX’s Solana holdings had grown by $2.79 billion because the starting of the 12 months, with $2.158 billion coming within the final 30 days alone.
Solana’s massive rally has elevated the potential of FTX prospects recovering extra of their misplaced cash. A US decide has given the bankrupt alternate permission to liquidate its cryptocurrency holdings worth over $3.4 billion, including $1.1 billion in SOL. Nonetheless, a big portion of FTX’s SOL holdings (42.2 million tokens) are nonetheless locked up and never instantly tradable in the marketplace.
In keeping with crypto analyst Jacob Canfield, Solana may simply commerce over $1,000 per coin and take the second spot behind Bitcoin.
Featured picture from Shutterstock
