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"Ethereum Killer" Solana's Top Spot Threatened by FTX Drama and Emergence of Strong Opponent

Mon, 11/07/2022 - 12:59
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Gamza Khanzadaev
Solana risks getting hurt by Binance; FTX drama and losing its place at top
"Ethereum Killer" Solana's Top Spot Threatened by FTX Drama and Emergence of Strong Opponent
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SOL, which is the 10th largest cryptocurrency by market capitalization according to CoinMarketCap, could lose its place at the top as a result of the growing drama surrounding the FTX exchange. After information leaked to the public about the possible insolvency of Alameda Research, an affiliate of FTX and its head Sam Bankman-Fried, FTT and SOL tokens have been subject to a sell-off. While the situation around FTT as a native FTX token and a major asset in Alameda accounts is clear, little is known about Solana.

At the same time, according to the data, Alameda holds the equivalent of $1.2 billion in SOL on its balance sheets. In this regard, experts note that in addition to the pressure on the SOL price due to the general situation around Alameda and FTX, there is a risk that its large holder could sell the Solana token in order to stimulate solvency.

Here's What's Happening with FTX and Why It Is Selling Millions Worth of Stablecoins

Market cap top battle

A look at the top cryptocurrencies by market cap reveals another threat to Solana's position there. Polygon's native blockchain token, MATIC, is noticeably shortening its distance from Solana. At number 11, MATIC is up 30% in value in the last seven days, and it is less than a billion dollars behind the prestigious number 10 slot held by Solana in the market cap top.


Polygon (MATIC) Rallies by 27% Ahead of Series of Events in India

Judging by the latest developments in the life of Polygon, which is going on tour in India, and the clouds thickening around large holders of Solana, very soon the crypto space may get a new top 10 cryptocurrency.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.