Solana (SOL) has been one of the biggest losers among the top cryptocurrencies in 2022. The price of Solana fell below the $10 price level making it difficult for the community to expect a recovery. However, this report suggests where Solana Blockchain could be headed for worse.
Solana entered 2022 with a trading price of around $172. Meanwhile, SOL's price has dropped over 94% on a year-to-date (YTD) basis to trade at $9.40. Its market cap has shrunk to $3.4 billion.
Based on the data, the total locked value (TVL) of the Solana network decreased by 97%. The recent collapse of FTX and Alameda SBF has dragged the SOL token into the turbulence zone. Most recently, Arthur Hayes, co-founder of crypto exchange BitMEX called Solana a Shitcoin.
Solana also presented details of his exposure to FTX. There is $1 million in cash, 3.24 million FTX shares, and 3.42 FTT tokens. At the same time, the company also holds 134.54 million SRM tokens that are stuck on FTX tokens.
Reports mention that CLOB Serum and Solana are critical steps for DeFi infrastructure. However, the Serum program update key is not controlled by SRM DAO. This directly implies that hackers who steal assets from FTX can update Serum at will.
Meanwhile, the Solana community is trying to avoid this by fixing the damage through the creation of the Openbook dex. OpenBook is claimed to be a DAO where all development is sourced from people who refuse to leave the network.
The question that haunts many Solana investors is where is Solana headed after this? Firedancer, an independent validator for the Solana Blockchain, built on Jump will scale throughput, sustainability and efficiency.
Meanwhile, Openbook is on a mission to save Solana DeFi. On the other hand, Aurory, a Solana-based blockchain game project will make one of the first Web3 games on mobile devices.
