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Solana's Devastating 44% Loss Awaits Aggravation: Crypto Market Review, November 11

Fri, 11/11/2022 - 23:50
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Arman Shirinyan
Fate of one of the biggest Ethereum competitors is in hands of stakers
Solana's Devastating 44% Loss Awaits Aggravation: Crypto Market Review, November 11
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Contents

The recovery of the cryptocurrency market continues after one of the biggest exchanges in the industry announced its insolvency. The majority of digital assets from the top 10 are showing us a successful recovery despite the lack of inflows to the market.

Solana is not recovering

While some assets are returning to their post-FTX-drama levels, Solana remains one of the most oppressed assets from the top 100 of the cryptocurrency market. SOL investors are still waiting for the surge of selling pressure thanks to the 80 million staking unlock.

SOL Chart

Such a large injection of funds on the market will certainly cause a volatility spike that will drag Solana further down. Unfortunately, a scenario in which unstaked funds simply dissolve in the space seems unlikely. The only reassurance for the market would be the gradual injection of funds and their further realization, rather than a one-time tossing out of millions of coins on an illiquid market.

Chainlink moves through

The prosperity of Ethereum on the market and all the benefits the network took from the whole situation offset the resilient performance we saw on Chainlink through a tough three days on the market.

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A journey to multi-year lows was not the case for LINK, which successfully bounced prior to reaching the 2022 low of $5.3. With significant room for maneuvering, LINK bulls successfully built a cascade of support levels that panicking investors could have bypassed in two days of trading.

With the bounce off of the $6.2 price level, Chainlink should be able to avoid a further downfall and consolidate around the pre-dump price level of $8. Prior to the FTX crash, LINK has been moving in the rangebound formed back in the summer.

The positive price performance of the asset might also be a potential surge in Link-based solutions that will become handy during the process of reserves verification of various exchanges. The Merkle Tree proof of reserves will most likely become a new standard for the industry, and Chainlink may offer solutions that will solidify exchanges' financial stability in the eyes of their users and investors.

Ethereum avoids aggravation

The stability of Ethereum on the market amid the crash is something most digital assets on the market might desire. The second biggest cryptocurrency went through a series of selling pressure spikes with no issues‌, not even violating the $1,000 threshold.

The main reason behind the high resilience of the asset is tied to a noteworthy spike in the burning rate and the successful absorption of most of the volume FTX injected on the market during its attempt to gain more liquidity to satisfy users' withdrawal orders.

Additionally, the network saw a surge in the burning rate, making Ethereum deflationary, with the issuance of the asset reaching -0.029% per year. With the biggest competitor of the network going down and the demand for decentralized finance rising, Ethereum will solidify its place on the market in the foreseeable future.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.