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Market Analysis
SOL Down Over 6% as Binance & OKX Suspend Solana USDT, USDC Deposits
SOL fell over 6% Thursday after Binance and OKX halted Solana USDT, USDC Deposits.
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Solana (SOL) is down more than 5% in the last 24 hours as crypto exchanges Binance and OKX delisted deposits of Solana USDC and Solana USDT, the companies announced Thursday. The token was trading at $13.26 at the time of the writing.
SOL YTD Loss Increases to More Than 90%
Solana (SOL) tumbled by over 5% Thursday after Binance and OKX announced they are temporarily suspending USDC (SOL) and USDT (SOL) deposits. The move comes after Crypto.com also halted USDC (SOL) and USDT (SOL) deposits, citing “recent industry events.”
“Execution time: We will delist the above-mentioned token networks at 3:00 AM UTC on Nov. 17, 2022.”
Delisting of USDC-Solana and USDT-Solana token networks
SOL declined over 3% in the last hour, currently trading at $13.26, according to CoinMarketCap. The token lost over 90% in value since the start of the year.
The Solana drop represents the latest in a series of blows for the crypto market, which has significantly worsened since the collapse of the crypto exchange FTX. The company sustained a liquidity crunch after it was revealed that it used user funds to cover liabilities of its sister firm Alameda Research.
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SOL Suffers Heavy Blows Due to Strong Ties with FTX
Solana has been one of the biggest victims of the FTX crash in the recent period due to the blockchain’s strong ties with the crypto exchange. The token saw a massive sell-off since FTX’s demise, mainly due to rumors that Alameda was considering offloading its SOL holdings.
Earlier reports said that Alameda was holding about $1.15 billion in SOL as of June 30. The figure represents roughly 10% of Solana’s market cap at the time.
Similarly, the Solana Foundation, the non-profit group supporting the Solana blockchain, said it held around $1 million in cash or cash equivalents in FTX before the crypto exchange halted withdrawals. Furthermore, the foundation also held 3.24 million common shares in FTX trading and 3.34 million FTT tokens, which significantly contributed to FTX’s fall.
Crypto.com CEO Kris Marszalek said that “FTX was an important bridge/venue for SOL-based stablecoins, we do not want any additional risk to our users coming from this area, hence disabling it.”
While the crypto winter affected all digital assets in 2022, SOL remains one of the hardest-hit tokens. The network has suffered several network outages throughout the year, shaking investors’ confidence in the blockchain.
Were you affected by SOL’s latest slump? Let us know in the comments below.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
