Try Quests to earn SOLFTX Impact: The case of Solana
Introduction
The sudden collapse of FTX shacked the crypto market on November 8th, 2022 again. Last time, just 5 months ago, on May 20th, 2022, the blockchain world experienced another plunge as a result of UST depegging. This may happen again in the near future. The question is how the blockchain world will respond to the next turbulence.
To answer this question we should deeply understand the effect of the incident. Among major chains, Solana was hit harder due to its relations with FTX.
This dashboard focuses on the Solana blockchain and attempts to portray how this chain was affected by FTX collapse and surrounded tumulus.
The effect of the FTX collapse will be examined in the following aspects:
- SOL price
- Users adoption
- Users activities
The first response of the crypto market to the FTX insolvency presents itself in the fall of BTC price. The whole crypto market, including SOL, the native token of the Solana chain, dropped accordingly.
The graph below shows the hourly BTC and SOL price over time. We can see how SOL price and BTC price went hand in hand after the collapse. The scatter plot supports this correlation. Correlation between BTC price and SOL price is very high.
The findings reveal that SOL price responses to the collapse was the same as the BTC coin.
The graph next to this box shows how the number of new users on Solana has changed since the beginning of November.
We can see that the daily number of new users decreased significantly after November 8th.
New user is defined as users who executed their first transactions.
The boxes below present a ten-day change of different metrics.
As can be seen, the number of transaction as well as the number of active users in ten days after the collapse have dropped while the number of swaps an swappers has jumped.
Sadly, the number of NFT sales and the number of NFT purchasers has also decreased unlike the volume of NFT sales and the number of NFTs sold.
We can see that on overall NFT activities in ten days after the collapse is lower than than the 10-day period before.
Two periods are compared in this section: 10 days before 8th November and 10 days after.
To have a base for comparison here we focus on NFT Sales on a Solana and Ethereum.
The data shows that:
- The decrease in the number of NFT sales and the Volume of NFT sales on Ethereum is more than on Solana.
- The decrease in the number of NFT purchasers on Solana is more than on Ethereum.
This dashboard examines the FTX collapse impact on the Soalan blockchain. Four main factors have been focused on: Price, user adoption and user activities in general and NFT activities in particular.
To have a bigger picture, the FTX collapse impact was investigated among some other blockchains (Ethereum, Polygon, Optimism and Arbitrum) and over time.
The analysis reveal that Solana have been largely affected by the incident.
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Price immediately dropped down by the incident.
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user adoption has decreased since the incident.
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Unlike other selected chains, number of transactions and number of unique users has decreased on Solana on average.
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The number of NFT Sales and the volume of Sales has decreased while the number of purchasers has increased.
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We can conclude that Solana users has dropped significantly that should be carefully considered.
To better understanding of the effect of FTX collapse on the Solana blockchain, comparison is employed.
In this section changes in Solana will be compared with four other chains: Ethereum, Polygon, Optimism and Arbitrum.
Data shows that:
- Number of transactions on all selected chains has increased after the collapse except Solana.
- Number of active users similarly on all chains has grown since the collapse except Solana.