This article is adapted from a podcast by Mable, former partner at Multicoin Capital and current Chief Revenue Officer at STEPN. The original content has been transcribed and edited for clarity.
After FTX declared bankruptcy, Solana—the blockchain it heavily supported—was severely impacted. The chain faced multiple crises:
- The SOL token price plummeted from its $100 peak to under $10 (currently rebounded to $22)
- Total Value Locked (TVL) dropped nearly 98% from its all-time high
- A 48-hour network outage in February went unnoticed due to low activity
- Key NFT projects like DeGods and y00ts migrated to other chains
Once hailed as the most promising "Ethereum killer," Solana now struggles with dwindling user engagement and validator attrition. While FTX's backing was pivotal to Solana’s early success, it wasn’t the sole factor.
This article revisits the turbulent journey of Solana through the lens of Mable’s January 2023 podcast. As FTX’s potential revival sparks discussions, could Solana also stage a comeback?
Key Insights
- Origins of Solana: How Anatoly Yakovenko’s late-night coding session birthed the chain
- Survival Tactics: Solana’s unconventional strategies to overcome early skepticism
- The FTX Alliance: How SBF and Solana mutually catalyzed growth
- Developer Onboarding: Grassroots efforts to attract Rust builders
- Turning Points: Phantom Wallet, Magic Eden, and STEPN’s role in adoption
- Post-FTX Future: Decentralization as an opportunity amid crisis
The Unlikely Beginnings
A Humble Genesis
Anatoly Yakovenko, a Ukrainian-American ex-Qualcomm engineer, conceived Solana in 2018 after realizing Ethereum couldn’t handle high-throughput trading. His vision: a blockchain matching Nasdaq’s speed. The initial code was drafted during a caffeine-fueled night—a far cry from the polished narratives of well-funded rivals.
Funding Struggles
Solana’s early fundraising was arduous:
- 2018 Asia Tour: Pitched to Chinese/Korean/Japanese investors with little success
- Total Raised: Just $25.53M across private/public rounds—paltry compared to rivals like Avalanche ($55.5M) and Near ($63M)
- Investor Skepticism: Dismissed as "second-tier" due to the team’s non-traditional crypto backgrounds
"Solana’s founders lacked the ‘star power’ of Vitalik or Emin Gün Sirer. Their story didn’t resonate with Asian investors during the bear market." — Mable
The FTX Catalyst
The SBF Gamble
In July 2020, Sam Bankman-Fried (SBF) tested Solana’s resilience by flooding it with spam transactions. The chain held up, convincing him to invest and build Serum—an orderbook DEX that became Solana’s first flagship DeFi project.
Strategic Moves
- Token Unlock Reset: Consolidated vesting schedules to avoid piecemeal sell pressure
- Liquidity Boost: Alameda Research provided market-making support
- Stablecoin Onramps: SBF personally brokered USDC/USDT integrations
"Your market cap is your brand. Solana needed liquidity and attention—FTX delivered both." — Kyle Samani, Multicoin Capital
Building the Ecosystem
Developer Acquisition
- Target Audience: Rust developers from tech giants (Google, Facebook) and Polkashian refugees
- Hacker Houses: Global pop-up events fostering hands-on collaboration
- Grant Programs: Over $1M in prizes across 5 hackathons by 2022
Adoption Flywheel
| Milestone | Impact |
|---|---|
| Phantom Wallet (2021) | Smoothed UX, replacing clunky Sollet |
| Magic Eden (2021) | Captured 90% NFT market share in 2 months |
| STEPN (2022) | Brought 500K+ non-crypto users via move-to-earn |
Post-FTX: A New Chapter?
Despite FTX’s collapse, Solana shows resilience:
- Active Developers: 2,082 monthly builders (+83% YoY per Electric Capital)
- Decentralization Push: Validator count grew 40% since November 2022
- Community Sentiment: "The purge of mercenary capital may force organic growth." — Raj Gokal
👉 Explore Solana’s latest developer tools
FAQs
Q: Can Solana survive without FTX’s market-making?
A: Yes, but with slower growth. Native projects like MarginFi and Jupiter are filling liquidity gaps.
Q: Why do developers still choose Solana?
A: Low fees (<$0.001/tx), Rust’s performance edge, and established tooling (Anchor Framework).
Q: Is SOL a good investment now?
A: High risk/reward. The chain must prove it can sustain utility beyond speculation.
Final Thoughts
Solana’s journey—from underdog to contender to crisis—mirrors crypto’s volatility. While FTX’s fall severed a lifeline, the chain’s technical merits and passionate community offer a fighting chance. As Anatoly once mused over whiskey: "Three years in, the old guards remain. That’s what matters."
👉 Track Solana’s real-time metrics
References
- Messari: Solana Funding Rounds
- Electric Capital: 2022 Developer Report
- Solana Foundation: FTX Exposure Clarification
Disclosure: This content is informational only and not investment advice. Always conduct independent research.