In November last year, the sudden collapse of FTX, the world’s second-largest cryptocurrency exchange, sent shockwaves throughout the larger market. However, Solana (SOL), which received a lot of bad press as a result of its limited exposure to falling trading platforms, was one of the biggest victims.
Solana has many supporters, including Sam Bankman-Fried, the disgraced former CEO of FTX, who holds a large number of coins on the company’s books. As a consequence, SOL decreased by 63% a week after the collapse.
However, the SOL community has reason to rejoice when signs of recovery appear.
According to a tweet, Solana’s total decentralized exchange (DEX) volume over the last four months has surpassed pre-FTX levels, indicating a revival of interest in DeFi activity.
Think about this: Since the start of 2023, a total of $5.57 billion in trade has been completed on the chain, compared to $5.54 billion in the four months prior to the collapse. The DeFiLlama data shows a similar pattern. Trading volume trends in the previous four months matched pre-FTX levels after dropping in December.
In addition, significant developments in the last month such as the migration of Helium (HNT) to the Solana chain provide increased network liquidity. Over $572 million in assets held by Solana at the time of writing, an increase of 18% over the previous day. Additionally, it represents the chain’s highest total locked value (TVL) in over five months.
Several of Solana’s other key performance indicators are also showing signs of improvement. Weekly transaction fees earned on the network are creeping closer to their pre-FTX values, as Token Terminal shows.
The same could not be said for network users, as the weekly average of daily active users held at 100K, a far cry from the 200K users before the collapse. According to statistics from CoinMarketCap, SOL is trading at $21.85 at the time of publication, 41% below its pre-FTX crash price.
According to Coinglass, SOL’s face value of Open Interest (OI) is $263 million, down about 17% over the previous two weeks.