š§© The Mystery of Solana: What Really Happened?
Solanaās rise and fallāand rise againāreads like a thriller in the crypto world. Letās break it down:
š Solanaās Meteoric Rise (2021)
Speed & Scalability: Solana delivered 50,000+ TPS with near-zero fees ā faster than Ethereum.
Massive Ecosystem Growth: NFTs (like Degenerate Apes), DeFi apps, and meme coins exploded.
Hype & Funding: Backed by FTX, Alameda Research, Multicoin Capital, and VC giants.
$SOL Price Surge: From ~$2 to $260+ in 2021.
š„ The Fall (2022ā2023): Why Solana Plummeted
š§Ø 1. FTX & Alameda Collapse
FTX and Alameda Research were massive holders of SOL ā possibly up to 13%+ of total supply.
When FTX went bankrupt in November 2022, their liquidation of SOL reserves created a huge dumping pressure.
Solana's price dropped to as low as $8 ā over 97% down from ATH.
ā Alamedaās selling wasnāt just panic ā it was court-ordered liquidation, flooding the market.
š 2. Network Outages & Reputation Damage
Solana suffered multiple outages in 2022ā2023.
Critics labeled it the "centralized chain" with too much validator control.
Developers and users lost confidence temporarily.
š 3. āWho Owns the Most?ā & Strategic Dumping
Before FTX collapsed, insiders like Alameda, early VCs, and even some ecosystem devs had massive bags of SOL
Thereās strong speculation that āsmart moneyā dumped to crash price, creating panic and rebuying low during the bloodbath.
Yes ā itās possible SOL was āruggedā by its own early insiders for price advantage.
š§¬ Solanaās Rebirth (2024ā2025)
š What Changed?
New independent ecosystem away from FTX shadow
Massive NFT & consumer app growth (Helium, Jupiter, Tensor, etc.)
Network stability improved drastically
Solana Mobile (Saga, Chapter 2) created a new on-chain app layer
Tokenomics shift: Supply stabilized, staking rewards optimized
š§¾ Is Solana Now ETF-Ready?
ā
VanEck and Franklin Templeton have filed Solana Spot ETF proposals
These are major TradFi players, betting on Solana as a serious Ethereum competitor
ETF = no need to dump coins anymore ā institutions hold SOL to earn from:
Staking
Token appreciation
Transaction fee rebates
Now, those who once dumped it may be building long-term yield-generating positions.
š¤ Could Solana Crash Again?
Itās unlikely in the same way:
FTX overhang is largely cleared
Insider token unlocks have mostly passed
ETF approval would support stable demand
SOL staking encourages long-term holding over dumping
BUT:
Solana is still heavily VC-backed and may remain volatile ā especially if a whale decides to rotate funds.
ā
Summary: Then vs Now
Phase What Happened Who Controlled It Risk
2021ā2022 Pump to $260Alameda, VCs, FTX Hidden selling
2022ā2023 Crash to $8 Forced liquidation Extreme
2024ā2025 Recovery to $140+ Broader holders, ETF filings ETF dilution, not dumps
š§ Conclusion
Yes, Solana was likely strategically crashed by FTX/Alameda and insiders. But now, it's transitioning to an ETF-backed, institutionally-aligned asset with real use cases, especially in consumer crypto, NFTs, and payments.