Cryptocurrencies
SOL Price Declines as its NFT Platform Struggles to Get Ahead
The token behind the speedy layer-1 blockchain Solana has shrinked by double-digits of 12% in the past 24 hours according to data from CoinMarketCap.
The downward slope was recorded despite the recent good news that Google cloud will start operating as Solana’s validator.
Now that we got your attention… check this out: Google Cloud is running a block-producing @solana validator to participate in and validate the network.
— Google Cloud (@googlecloud) November 5, 2022
Data from Nansen revealed that returning NFT buyers on Solana have dropped significantly to a low level that has not been experienced since November 2021. It should be noted that returning NFT buyers is used to gauge growing interest in the blockchain.
Beyond returning NFT buyers, it is noteworthy that NFT transactions have also shrinked on the platform. While it recorded an all-time high of 650,000 transactions in early September, the stats have continued to nosedive with just 160,000 NFT transactions as of November 7.
Solana is described as a proof-of-stake (PoS) layer-1 blockchain, which offers virtually similar operational services as Ethereum such as decentralized finance (DeFi) applications and Non-fungible tokens (NFTs).
Meanwhile, the latest development has eroded the last week’s gain of Solana token, which now contracted from $36.29 to $31.02 earlier. It has partly rallied up, and is $32 at press time.
General Crypto Market Outlook
It is instructive to note that Solana is not the only digital asset affected by Monday market outlook. The first two leading digital assets Bitcoin and Ethereum are also down by 2.15% and 2.19% respectively.
Bitcoin is trading at $20,729 while Ethereum is trading at $1579 according to CoinMarketCap.
Crypto analysts believed that the market took a negative trend following disclosure by Binance CEO, Changpeng Zhao, that the company would liquidate its entire FTT holdings in the coming months.
Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won't pretend to make love after divorce. We are not against anyone. But we won't support people who lobby against other industry players behind their backs. Onwards.
— CZ 🔶 Binance (@cz_binance) November 6, 2022
The announcement followed a huge transfer of approximately 23 million FTT Tokens worth $530 million to Binance, which Binance CEO has confirmed to be part of the fund reserved for liquidations.
Yes, this is part of it. https://t.co/TnMSqRTutr
— CZ 🔶 Binance (@cz_binance) November 6, 2022
Meanwhile, on-chain data trackers revealed wallets in connection with FTT backer, Alameda Research, have sent $66 million worth of stablecoins to FTX addresses in order to absorb selling pressure.
Within 12h, Jump Trading and Alameda have been depositing a huge number of stablecoins to @FTX_Official.
• Jump Trading: 37.3M
• Alameda Research: 66MAre they trying to buy $FTT? pic.twitter.com/DI7CP635eL
— The Data Nerd (💙,🧡) (@theData_Nerd) November 6, 2022
