* SOL, the native token of the Solana blockchain, has slumped to under $10 for the first time in months.
* The slump in value comes amid a continued stream of negative stories surrounding the Solana crypto ecosystem, as well as the ongoing FTX saga.
* Blockchain watchers have pointed out that Alameda wallets have become active once again, and funds are being moved into blue chip cryptocurrencies like ETH, BTC and USDT.
The value of Solana (SOL), the native token of the Solana blockchain, has taken a sharp dip, falling to under $10 for the first time since February 2021 on Wednesday. The sudden collapse of Sam Bankman Fried’s FTX/Alameda crypto empire in early November has contributed to the token’s losses, which now stand at roughly 70%.
The current slump in value comes amid a continued stream of negative stories surrounding the Solana crypto ecosystem. Two of Solana’s top non-fungible token (NFT) projects, DeGods and y00ts, recently announced that they are leaving the platform to build on the Ethereum and Polygon blockchains.
The situation has been further complicated by recent activities on Alameda wallets. Blockchain watchers noticed on Wednesday that Alameda wallets have become active once again, with funds being moved into blue chip cryptocurrencies like ETH, BTC and USDT. In some cases, the funds are being moved via transaction destination obscuring instant exchangers. There is speculation that Sam Bankman-Fried is behind the dumping of tokens, and traders are speculating that SOL tokens might also be getting dumped.
Sam Bankman-Fried was a strong supporter of the Solana blockchain and is thought by some to have artificially boosted its value. It is unclear whether his involvement in the recent dumping of tokens is an attempt to manipulate the market, or simply a sign of his cutting ties with the platform. Regardless of the reason, it appears that SOL’s woes could worsen in the near future, with traders predicting that the token could fall to as low as $3.