Solana is suffering as activity has plummeted following the FTX collapse. Its core asset SOL is also looking extremely weak at the moment.
On December 15th, DeFi and Web3 research firm Yield App Labs reported the sorry state of Solana Network.
“Despite the resilience shown by the community, the network itself is struggling,” it said. The once so-called ‘Ethereum killer’ is now practically dead in terms of on-chain activity.
It added that the daily total on-chain for Solana has declined by a massive 98.8%.
On-chain volumes averaged around $65 billion per day in early September. It has now come down to a daily average of only $742 million per day, according to data from The Block.
Slumping Solana Statistics
Additionally, daily Solana transactions have dropped from around 35 million in September to around 18 million today. Transactions have dropped by almost 50% in just three months. By comparison, Ethereum transactions have fallen by about 16% over the same period.
Furthermore, daily active wallets on-chain are down 59%, the report said. Solana averaged around 852,000 daily active wallets at the beginning of September, and this figure has dropped to around 364,000 active wallets. Additionally, new daily addresses on the network have almost halved in the past few months.
Decentralized finance (DeFi) is also a dead duck on Solana. The total value locked since the beginning of September has dropped from $1.4 billion to around $400 million. According to DeFiLlama, a 70% slump from its all-time high TVL of $10 billion in November 2021 has added to the epic crash.
Yield App Labs concluded that there are growing concerns over developer retention:
“There are concerns about the long-term competitiveness of Solana on a technical level, and concerns whether the dev and user community will choose to remain on Solana for the months and years to come in a bear market following the FTX fiasco.”
It states that the removal of FTX and Alameda stuff could lead to a more decentralized and fairer network.
The native coinage of Solana is battered along with its network. SOL is down 2% on the day and has fallen around the $14 level at press time.
The coin has fallen by more than 60% since the collapse of FTX in early November. Meanwhile, the rest of the crypto market has recovered slightly and entered a phase of consolidation.
SOL price is now down 94.6% from its November 2021 high of $260.
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