The majority of the crypto exchanges decided to halt the deposit & withdrawal of the two biggest stablecoins on the popular Proof-of-stake blockchain Solana.
Solana is a popular crypto network because of its unique protocol “Proof-of-history” which allows the network to process transactions with the scalability of more than 50,000 TPS. Solana network is known as a highly efficient network over all other leading networks but faced a huge downfall because of the multiple network outages.
On 17 November, the majority of the leading crypto exchanges like Binance, OKX, KuCoin, and ByBit decided to suspend the network of Solana for USDT (Tether) & USDC (Circle) on Sol network. Which means users can’t deposit or withdraw USDT & USDC via Sol network.
The announcement by Binance exchange on this matter is failing to provide necessary information on why the exchange delisted Sol network-supported stablecoin deposits & withdrawals.
OKX exchange confirmed that deposits of the two biggest stablecoins are now not allowed via the Solana network but still users can deposit through the other chains.
FTX downfall & Solana
As we know that a week ago, the FTX exchange faced a very big critical situation where the majority of the crypto traders withdrew their funds from the exchange and that resulted in a very low liquidity issue on the platform.
Finally, the exchange filed for Bankruptcy in a US district court with the majority of the affiliated companies like Alameda Research, FTX.us etc.
Reportedly Alameda was holding a very big amount of funds in Sol tokens and in that critical situation the team tried to sell Sol token holdings to overcome financial challenges. The whole thing resulted in a very big sell pressure on Sol token.
The current trade price of Sol is $13.6 and this price is 65% down since the downfall of the FTX exchange & its affiliated companies.