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- SOL is down, Solana isn’t! 👍👍
Good Morning, Switchers 🌞
👋Welcome to Switch Daily.
🥹It’s Monday again. Laden with work and far off from the next FriYay. But for some reason, this week feels different. Let’s take a moment to understand why!
For starters, tomorrow — 13 December 2022, we are going to get the U.S. CPI/ inflation data for November. If you remember right, the October figure — at 7.70% — was a tad better than expectations, which even drove the crypto market higher, albeit briefly. We are expecting 7.60% for November. 🤞🤞
Do keep an eye out for your favorite cryptos, as they have moved to the CPI figures in the past.
Among other things, we might finally see the talk of the market SBF testify on 13 December at the critical House hearing. We are all ears!
Meanwhile, SBF with his associates, right before the House hearing:
BTW, if you like reading this newsletter, give us a shout-out on Twitter and get your friends to subscribe. It will mean a great deal to us!
Here’s what we’ve got for you today:
Market pulse
How’s Sol doing?
Quick news bytes
Meme of the day
Market pulse 📈
The market is doing a Lil “RED” riding hood 🔻
Red ain’t the color you want to see on a Monday morning. Especially if you are a crypto trader who likes to ride the wave. Currently, the broader market is down 1.16%, pushing the crypto market capitalization down to $845.93 billion. Consumer favorites — BTC and ETH are down 1.18% and 1.13%, respectively. And DOGE continues to shed long accumulated gains, experiencing a 4.57% dip over the past 24 hours.
Yet, it’s not all a “RED” talk. We do have gainers on our plate, with ApeCoin (APE) leading the charge with a 5.01% uptick. And FET — one of the top gaining tokens last Friday — manages to hold onto the greens even today, with a 3.90% uptick.
What’s positive is a slight increment in the market sentiments as the Crypto Fear and Greed index moves to 27.
What’s up with SOL? 🙋
How’s your portfolio doing? Bad question to ask after the FTX debacle, eh?
Well, it’s sorta been over a month, and we think most of the major coins have slowly revived from the shock and gone back to the pre-FTX level bearishness. Still bearish, but the winter isn’t frosting our pockets so bad, we guess. Fingers crossed 🤞🏽.
But if you had invested in one coin—Solana — thinking that you were buying the dip sometime in Oct 2022, the chances are that your portfolio is still paying the price, like us. 🥶The whole FTX scenario, took a huge toll on Solana’s price for various reasons. We have a detailed account of that here; check it out!
Here’s the thing, after FTX crumbled, Solana’s price went from a kinda glorified $37.8 to the sub-$15 levels. That’s a 50% fall in a couple of days 🤯. Since then, the SOL price action has been struggling to get up and is moving like a snail.
So, the big question is, will Solana revive itself from the FTX contagion, or is this a dead end?
The short answer is we don’t know yet.
But, we were also plagued with this question and went around looking for answers. Here’s what we found from all the research:
With FTX and Alameda out of the picture, Solana is more decentralized now. Well, hopefully!
Serum DEX—Solana’s decentralized exchange was hugely influenced by FTX and Alameda capital. After the FTX drama unfurled, the community realized that the project needed to be forked to make it independent of FTX. So, Maximillian Schneider, founder of Mango Markets, quickly assembled a team and launched the Open Serum project.
Turns out, Solana Labs, which is a US corporation, did not have any assets with FTX. Solana’s co-founder Anatoly Yakovenko tweeted that they are backed by $ and have a runway of over 2.5 years to function smoothly despite the price slump.
According to Santiment, an analytics tool, the developer activity on Solana has been more or less steady over the past three months. That means that developers have not abandoned the blockchain. Although the price slipped, people are still BUIDLing.
Per Solana’s network health report by Dune analytics, the network is still up and running. The number of transactions per second has been increasing at a steady phase except for a brief period during the FTX crash, but it has bounced back and is stable again in recent weeks.
Here is a Nansen tweet showing that day-on-day transactions within the Solana ecosystem haven’t dipped below the 200 million mark throughout Q3, 2022. Positive, right!
If you see last year’s price action, SOL went from $1 in Jan 2021 to ~$200 in Sep 2021. The value of the coin rose 200% within a span of a few months. Generally, price actions follow historical patterns. So, it should not be surprising if Solana makes a much stronger comeback in the next bull run, given that all the ties from FTX are cut off.
Note: We’re not financial advisors, and this is not financial advice. We’re merely your fellow investors sharing the knowledge we gather.
What’s making the news today? 🗞️
Despite most top crypto assets continuing to dip, famed NFT projects are lately seeing a spike in sales figures and transactions. Azuki — a Web 3.0-specific amine universe — has recently experienced a massive 550% surge in sales, as reported by CryptoSlam, a notable analytics platform. Even CryptoPunks — the Yuga Labs-driven NFT collection — is up 255% in terms of sales figures.
Popular fan token Chiliz (CHZ) has started seeing a positive funding rate, as per the Santiment metric. This move indicates that traders, who deal in Futures, are expecting CHZ to push through the bear market and move up. Exchange supplies have been declining since November, which might be positive in the short term.
Every bit of the staking fees accrued on the popular DEX SushiSwap will now head to the treasury in a move proposed by Jared Grey, Project Lead. While the open voting results show that most users are in agreement, there has been some verbal pushback as the new incentivizing model might impact the stakers financially.
Meme of the day!
Thank You,
See you tomorrow, folks. 👋
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