- The contagion of the FTX token collapse has spread to Solana after which the altcoin tanked 40 percent in the last 24 hours.
- Polygon MATIC’s strong performance and whale interest have helped it jump into the top-ten crypto list by market value.
The tremors of the collapse of the FTX token (FTT) have spread like a wildfire across the entire crypto market. As of press time, the broader crypto market is down by 11.74 percent losing over $100 billion in just the last 24 hours.
Bitcoin and almost all of the altcoins have undergone sweeping correction. However, Solana (SOL) is facing a massive blow with the collapse of FTX tokens (FTT). While the price of FTT tokens is down 75 percent, Solana (SOL) has corrected by 40 percent. As of press time, SOL is trading at a price of $17.1 and a market cap of $6.2 billion.
This recent crash in Solana pushes it out of the top ten list of cryptocurrencies by market value. Unseating Solana is Polygon’s native cryptocurrency MATIC. Currently, MATIC is the tenth largest cryptocurrency with a market cap of $7.8 billion.
Amid the broader market correction, Polygon (MATIC) is also down by 20 percent as of press time trading at $0.88. However, MATIC delivered a strong performance over the last week. Polygon’s MATIC is still trading 5 percent positive on the weekly chart while all other altcoins are in deep red.
Polygon’s strong performance in the market comes on the backdrop of a strong whale performance. Last week on November 4, the Polygon whale transactions touched an 8-month high. It marked the largest $100k+ whale transactions since February.
Why did the Solana price collapse?
On the other hand, the reason behind Solana’s collapse is massive liquidations by Alameda Research. As Alameda faces a strong liquidity crunch, it has been selling its SOL holdings to buy FTX tokens (FTT) which have been crushed in recent times.
Alameda was one of the biggest holders of Solana (SOL) tokens and it was holding $1.2 billion worth of SOL. The recent dump of SOL by Alameda led to a major price correction for the altcoin. Earlier today, Chinese crypto journalist Colin Wu spotted a strong Solana whale liquidation. Citing data from Solend.fi, he noted:
Solana Whale (3oSE9CtGMQeAdtkm2U3ENhEpkFMfvrckJMA8QwVsuRbE) is in liquidation and currently has 2,450,418.5 SOL (worth over $51 million) in collateral and 44,871,609.6 USDC in debt. However, Solana is currently facing congestion due to the update of the oracle.
India and Polygon’s Web3
Polygon’s recent report states that India is taking a leading role in the adoption of Web3 technologies and that it will become the epicenter for new blockchain technologies.
Polygon has announced seven Polygon Guild events and the first-ever Polygon Connect: India. the announcement from Polygon reads:
The Web3: Made in India Roadshow brings together some of the brightest minds in the blockchain world to provide IRL, hands-on blockchain education at Guilds across the country.