- Solana's daily liquidity had been heavily dependent on the now-bankrupt exchange, with many functions being handled by FTX.
- The collapse of FTX caused a significant liquidity crisis in the Solana ecosystem.
The collapse of FTX has caused a significant liquidity crisis in the Solana ecosystem, leading to a massive decrease in daily liquidity. According to BanklessTimes.com, the daily liquidity of the Solana ecosystem has decreased by 96% to 1.4 billion daily. The fall in liquidity has been attributed to the collapse of FTX, a significant cryptocurrency exchange.
Speaking on the data, the CEO of BanklessTimes, Jonathan Merry, said.
BanklessTimes CEO, Jonathan MerryThis is a huge blow to the Solana ecosystem. The daily liquidity was already on the decline before FTX’s bankruptcy, but this has been catastrophic. The Solana Foundation is now left with the difficult task of fighting back against the market downturn and restoring liquidity in their ecosystem.
Solana Is Working on a Solution to the Liquidity Crisis
FTX’s bankruptcy and insolvency has significantly impacted the crypto sector, with Solana being one of the prominent companies affected. The foundation announced that they hold 3.24 million shares in FTX’s common stocks and tens of millions of dollars worth of cryptocurrency stuck on the exchange.
Solana’s daily liquidity has dropped due to the FTX bankruptcy. The Solana Foundation has since announced that they are working on solutions to mitigate some of the effects of the FTX collapse and restore liquidity to their system. They are developing a system that will allow users to trade directly with each other without the need for a third-party exchange. This will provide greater liquidity and stability to the market.
Solana is a project designed to provide daily liquidity to the cryptocurrency markets. It does this by creating a pool of funds that can be used to buy and sell cryptocurrencies daily.
Can Solana Recover
The Solana community is still feeling the impacts of the FTX collapse. While the foundation is working to restore liquidity, it remains to be seen whether it will be able to recover fully. The project’s future hinges on its new system’s success and ability to provide reliable liquidity.
Only time will tell if Solana can recover from the FTX bankruptcy, but the crypto sector has been dealt with a significant blow for now.
