The FTX Collapse affected the SOL DeFi to an Extent of Loosing $700 Million since the Incident!
Solana-based NFTs took a massive hit of 68% price drop which brought its valuation from $ 424 million to $ 135 million in a matter of days. The massive drop in price for Solana’s NFT is due to FTX’s advocacy for the Solana layer 1 solution.

The Crypto world is crippled with incidences surrounding the crypto market crash, the recent FTX fiasco among some of the monumental incidences of Ethereum merging and transitioning to the Proof of Stake consensus. With so much happening all at once with FTX being bought by Binance and then pulling out on its offer, followed by FTX getting hacked, the whole of the crypto ecosystem is confused as to what happened. Here is a timeline of the incidents taking place to simplify what all took place since the beginning of November.
TIMELINE OF THE FTX COLLAPSE: IN BRIEF
DATE | UPDATE |
2 November, 2022 | CoinDesk publishes a document containing the balance sheet of Alameda Research that shows how overleveraged they are FTT tokens. |
6 November, 2022 | Binance CEO Changpeng Zhao announces that the company will be offloading all its reserves of FTT. |
7 November, 2022 | FTX’s Sam Bankman-Fried claims all is well with the crypto exchange and that assets are safe. |
8 November, 2022 | FTT token falls below the $22 level announced by the CEO of Alameda Research, resulting in a 75% freefall. Shortly after, Binance’s CZ announces its intention to acquire FTX post due diligence. |
9 November, 2022 | Binance officials backed out of the deal post the corporate due diligence over the mishandling of customer funds. |
10 November, 2022 | Tron’s founder Justin Sun announces a solution to help FTX. SBF announces that they are shutting down operations at Alameda Research. |
11 November, 2022 | FTX releases an official press release stating they have filed for Chapter 11 of the United States Bankruptcy Code. |
To recap, when the FTX exchange collapsed, the crypto market fell to a mere $ 786 billion from $1.02 trillion since the FTX fiasco scooped up all the crypto-linked assets. Nansen’s NFT-500 index reported a 14% sharp drop in Ethereum NFTs. Solana-based NFTs took a massive hit of 68% price drop which brought its valuation from $ 424 million to $ 135 million in a matter of days. The massive drop in price for Solana’s NFT is due to FTX’s advocacy for the Solana layer 1 solution. While the FTX was taking shape, the value of SOL crashed to $12 during November 14, 2022. Along with the FTX incidences that were affecting the entire crypto ecosystem, it also included the OG crypto ‘BTC’ along with Solana DEX called Serum (SRM).
Note: At the beginning of the meltdown FTT – the native token of the FTX exchange, was down by 89% while SRM was down by 53% in the last few days.
Read more: FTX collapse explained
The Fall Solana Defi
Back in November 2021, DeFi applications has made it possible for them to store more than $10 billion on the Solana network alone! The rise in SOL’s popularity was being led by some of the high-flying supporters that included Sam Bankman-Fried, the founder of the FTX crypto exchange, Multicoin Capital, Sino Global Capital among some other venture funds. Move to the present time, soon after FTX filed for Chapter 11 Bankruptcy and started facing proceedings, the value in SOL dropped by $300 million along with SOL loosing tens and millions of dollars, the amount of crypto that it had stranded in crypto assets on FTX, as reported by CoinDesk.
In a blog post yesterday, Solana Labs has stated the holdings of assets by the company. The blog said:
Solana Foundation asset exposure to FTX/Alameda
As of 11/14/22, the Solana Foundation has exposure to the below assets. These assets were held on FTX.com accounts (and continue to be held there) as of 11/6/22 when FTX.com ceased to process withdrawals.
- ~3.24m shares of FTX Trading LTD common stock
- ~3.43m FTT tokens
- ~134.54m SRM tokens
Read more here.
The above mention of the asset holdings points to deep financial ties that lay within Solana and FTX, which created the FTT token and held court over Serum, an on-chain crypto exchange that Bankman-Fried created and which was at the center of much of Solana-based decentralized finance.

DeFiLlama data regarding the same show that Raydium and Orca; two of the Solana-based decentralized exchanges (DEXs) are now the largest dApps on the network. Both Raydium and Orca are locking up over $51 million and $46 million respectively. However, both these dApps have encountered a 40% in liquidity exit the platform within the past week; while both of them together held over $150 million just a few weeks ago.
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