As the month of November began, the entire cryptocurrency industry was quite excited about its potential bullish run. The Feds also shared the Consumer Price Index (CPI) data, which could be promising as well.
Unfortunately, things did not go as expected because the crypto industry had to face the FTX exchange crash. Just when the crypto sector was aiming for a bullish November, things completely went south.
FTX Catastrophe is beyond FTT
As the FTX exchange faced a crash in the light of the leaked balance sheet, many expected it would only impact the FTX Token (FTT).
The crypto community was under the impression that only the FTX-issued FTX Token would take the hit in light of the recent events.
It turned out that the investors had miscalculated as the FTX turmoil resulted in a chain reaction. It has reportedly brought down many networks and cryptocurrencies that are linked with its entity.
Especially, the cryptocurrencies and firms that are linked with Sam Bankman-Fried, have taken a major hit.
CPI Data was Positive
It was on November 10 when the US Feds shared the consumer price index (CPI) data. Commonly referred to as inflation, the resultant inflation rates were lower than the benchmark set by the Feds.
This was a positive thing for the entire trading sector and the crypto trading sector would also gain from that. Unfortunately, the second week turned out to be disastrous for the entire crypto industry.
Following the release of CPI data, the stock market has performed well but the cryptocurrency industry is fighting the downtrend.
Due to the FTX crash, the native token on the Solana blockchain ‘SOL’ has ended up facing a downtrend.
SOL Price Dips by 32%
Just as the FTX exchange crashed, it also became the reason behind SOL’s demise. The trading price of SOL has recorded a 32% dip in the past few days. The valuation of SOL has also followed the same downtrend.
Things wouldn’t have been much worse for SOL if it were like the rest of the cryptocurrencies. However, Sam Bankman-Fried, the founder of FTX was among the early contributors to the Solana blockchain.
As Bankman-Fried had a connection with the Solana blockchain, the investors lost trust in the particular network as well. The distrust was evident from SOL’s trading price decline.
Solana’s TVL Plunged 32.4%
Due to the recent turn of events, Solana’s total value locked (TVL) has plunged tremendously. In the past 24 hours, the TVL for Solana has slid by 32.4%.
At the time of writing, Solana’s TVL is worth $423.68 million and it is too far behind its all-time high TVL of $10.17.