Solana Faces Investor Exodus!

Solana was a relatively unknown asset and blockchain until just a few months ago. The rally that began in July 2021 brought SOL a return of 713% and marked a new all-time high of $ 191.

Since then the market has not been very cheap for SOL and the last week has been particularly heavy with the most losses. In addition, this new development shows that investors have started to leave SOL.

Yesterday, the FTX exchange announced that its NFT marketplace will support the Solana blockchain. The news is expected to spark some uptrends in the Solana market as the network grew strongly due to the NFT hype in July and August. But unfortunately that is not the case.

In early October, SOL rose 22.3% and was fairly close to its all-time high. However, the price has fallen continuously since then. In the last 7 days alone, SOL has lost more than 17.11%, undoing almost all of the growth it had achieved at the beginning of the month.

Source: TradingView

The lack of a positive reaction from investors and the absence of price movements after the news was announced showed one thing very clearly. The NFT hype is really dying. It is safe to say that this key factor could not trigger an uptrend.

So is SOL in danger?

Not really. However, there are some indications that SOL and the network are not at their best right now. In less than 48 hours, SOL received more than $ 13 million in liquidations from investors.

Source: Coinalyze

And the Sharpe ratio drops to -1.44. In addition, development activity, which is on a steady growth path, has plummeted to its lowest level in 22 months since January 2020.

Source: Santiment

Even so, it still has some power. The spot volume is currently over $ 2 billion and the network is still of interest to institutions as over $ 12.5 million is flowing in this week.

Source: Coinshares

Solana has to work hard and show that they can do more than just rely on NFT to build a solid ecosystem. Some positive news from the upcoming Solana Breakpoint Conference, November 7-10, could help SOL turn the tide.

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