NFT Platform Metaplex Lays Off Staff, Citing Solana Recession

The FTX contagion has had a devastating effect on the Solana ecosystem. With Metaplex employees joining the list of those directly affected by the FTX fallout.

Metaplex is a decentralized protocol for the creation, commerce and use of digital assets on the Solana blockchain. According to the official website, with the help of Metaplex Studio, more than 22 million NFTs worth more than $3.6 billion are mined.

Layoffs have been making headlines this year, and Metaplex Studios is another company that has had to take this extreme measure. Stephen Hayes, co-founder and CEO of Metaplex Studios, announced on Twitter that he has decided to part ways with several members of his team.

chief executive officer They say that their treasury was not directly affected by the FTX collapse, but the indirect impact on the market is significant and they need to take a more conservative approach going forward.

Solanas worst hit by FTX fallout

FTX and Alameda Research hold 58 million Solana (SOL) tokens, representing about 11% of the total supply, As one thing after another came to light about the now-bankrupt exchange FTX, the price of SOL plummeted.

The coin got rejected from the resistance at $38.21 on 5 November and has been in a steady decline since then. After a drop of almost 65%, SOL is trading between $11.82 to $15.

Source: TradingView

Effects on the Solana Ecosystem

Not only the price of the token SOL, but also the Total Value Locked (TVL) in the Solana ecosystem has been greatly affected. According to data from Defilama, TVL is down almost 70% since November 6. The TVL of the Solana ecosystem used to be $1 billion, but due to the FTX crash, it is currently around $300 million.

Source: Defilama

Solana Foundation Had over $1 million in FTX, holds FTX shares worth $3.24 million, and has invested $3.43 million in FTX tokens (FTT). So the FTX fallout is a huge blow to the entire Solana ecosystem.

However, Solana co-founder Anatoly Yakovenko tweeted that they have 30 months of runway left at the current burn rate.

Anything to say about the impact on the Solana ecosystem due to the FTX decline or something? Write to us or join the discussion on our Telegram channel. You can also catch us on Tik Tok, Facebook, or Twitter,

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