In November of last year, the abrupt collapse of FTX, the second-largest cryptocurrency exchange in the world, sent shockwaves across the larger market. However, Solana [SOL], which received a lot of bad press as a result of its limited exposure to the crashed trading platform, was one of the biggest victims.
Solana had a lot of supporters, including Sam Bankman-Fried, the disgraced former CEO of FTX, who held a sizable quantity of coins on the company’s books. SOL decreased 63% the week after the collapse as a consequence.
The SOL community did, however, have cause to rejoice when signs of recovery appeared.
According to a tweet, the total volume of Solana’s decentralized exchange (DEX) during the last four months has exceeded pre-FTX levels, indicating a resurgence in interest in DeFi activities.
Think about this: Since the start of 2023, trades totaling $5.57 billion have been finalized on the chain, as opposed to $5.54 billion in the four months before the collapse. DeFiLlama data indicated a similar pattern. The trend of the trading volume in the previous four months matched the pre-FTX levels after falling in December.
Additionally, significant developments in the past month like Helium’s [HNT] migration to the Solana chain gave the network’s liquidity a boost. Over $572 million in assets were held by Solana at the time of writing, an increase of 18% from the previous day. Additionally, this represented the chain’s highest total value locked (TVL) in more than five months.
Some of Solana’s other key performance indicators have also shown signs of improvement. The weekly transaction fees earned on the network crept closer to the pre-FTX values, as Token Terminal shows.
The same was not true for network users, as the weekly average of daily active users lingered at 100k, a long cry from the 200k users it had been before the collapse. According to statistics from CoinMarketCap, SOL was trading at $21.85 at the time of publication, 41% below the price it was at right before the FTX crash.
According to Coinglass, the nominal value of SOL’s Open Interest (OI) was $263 million, a decrease of approximately 17% over the previous two weeks.