Solana NFTs at risk after SOL token dump

Solana NFTs are at risk of losing value after the SOL token price drops 40% and the ecosystem goes into crisis. Currently, SOL trades at $15, which is an all-time low from its previous price.

The tussle between Binance and FTX that resulted in Sam Bankman-Fried losing billions of dollars has deeply affected Solana because of his huge investment in the ecosystem

Alameda Research had around $1.1 billion worth of SOL tokens in its balance sheet, which is 10% of the total supply. If the firm dumps all of it to save FTX, then Solana will suffer.

NFTs are directly linked to the crypto market. The collapse of Bitcoin, Ethereum, BNB, MATIC, FLOW, and other altcoins is causing the NFTs to decline in value.

On the other hand, people are panic unstaking SOL tokens. According to a Twitter post, $18M worth of SOL tokens has been unstaked in the last 24 hours, resulting in a massive dump.

For someone who bought a Solana NFT for $100 might cost half of its price now because of the SOL token worth.

Why should this be alarming? Because Binance is directly in competition with Solana in the NFT space. So, if the SOL dump does happen and the ecosystem crashes, Solana NFTs will fall too.

Since Binance has refused FTX’s acquisition, this might not happen. Nonetheless, the risk of liquidity for FTX still exists and the Solana community is barely keeping afloat.

Will Solana’s ecosystem recover from the dump or will it expand to affect SOL NFTs in the coming weeks? Nothing can be said as of now.

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