> Another disaster in the crypto world. Will it be SOLANA's turn after TERRA?

During the sharp fall of the crypto currency market in the second week of November 2022, Solana experienced a much greater fall. But what was the reason? Recently, good news has been published about the Solana project and the SOL crypto currency, and cooperation with Google Cloud is one of them. But in this good situation, what was the reason for the sharp fall in the price of Solana?

Alameda Research invested heavily in SOL. Alameda Research had about 50 million Solana currencies, which it decided to sell after the bankruptcy of its parent company. This amount is about one seventh of the total supply of SOL. For this reason, with the release of this large number of cryptocurrencies to the open market, we saw a sharp fall in the price of Solana crypto currency.

Due to the recent events in this dashboard, I plan to analyze the pool data to analyze the behavior of shareholders in the Solana ecosystem in the last week.

Methodology

Several sections are considered for the detailed examination of SOLANA pools. First, the amount of SOL staked and withdrawn along with the number of users and the number of transactions on a daily basis in the last 10 days has been discussed. Swaps have also been examined. Swaps are also divided into two categories. First, the information related to only the SOL token to stable coins and then the SOL token with Staked SOL to stable coins have been examined. And finally, the top swappers, stakers and withdrawers are also shown.

Solana Stake Pools

On Solana, stake pools are a collection of one or more validator nodes. In this way, delegators can stake to many validators at once, instead of staking to just one validator. In most instances, delegators will receive a liquid stake pool token in exchange for staking to a stake pool. By using a stake pool to distribute their staked SOL, delegators increase decentralization while receiving protection against any one validator node’s unexpected downtime.

Stake pools help decentralize the network by delegating stake across many validator nodes. Each stake pool has its own unique validator criteria and delegation strategy, with some pools requiring that validators be geographically decentralized and meet minimum performance criteria in order to be added to the validator set.

By delegating SOL to a stake pool instead of an individual validator, delegators help ensure stake (and therefore voting power) is decentralized across many validator nodes. This helps strengthen the Solana network in the long term. In addition, delegators receive liquid stake pool tokens which they can use on DeFi applications (a feature that is not available when staking to an individual validator).

Getting Started

Everything you need to know about liquidity pools is shown in the table and graphs below. In general, in the last 10 days, 2950 stake transactions, 1292 stakers and a total of 367K SOL have been staked. Also, 2170 withdraw transactions, 842 withdrawers, and approximately 2.22M SOL have also been withdrawn. Although the number of stake and stakers transactions is more than withdraw and withdrawers transactions, the volume of SOL withdrawn is more than 6 times the total volume of SOL deposited in these 10 days.

Although the volume of SOL staking is much lower compared to the volume of Withdraws, the marinade pool has played an effective role in staking in the last 10 days. More than 67% of all stakes were done in marinade and more than 25% of it in lido. But for withdraws, the situation is very different.

Since November 8, exactly when the price of SOL started to fall, we have seen a significant increase in withdraw, which reached its highest amount (more than 0.9M) on November 10. More than 88% of all withdrawals (approximately 1.96M SOL) were made at Lido. That means the decrease in liquidity in pools is directly related to the decrease in the price of SOL.

In the net stake charts, we see the negative stake volume. That is, the output volume of the pools is greater than the input volume. On November 10, we see the largest volume of output, which, as mentioned, most of it happened in Lido. net stake is positive only in blazestake and marinade pools, and the volume is negative in other pools.

In the charts of Cumulative withdraw amount, we can see that the slope of the chart is increasing rapidly on November 8th. In general, during the last 10 days, approximately 248.64K SOL have been staked in marinade, 93.46K SOL in lido and 16.7K in jpool. While the withdrawal volume in lido alone was more than 1.96M SOL equivalent to approximately 37.3M USD.

In the Stake volume distribution chart, we can see that the number of stakings is higher in low volumes. But in the withdrawal volume distribution chart, we can see a lot of density in all the volume intervals, especially from the 8th day. This means that only whales or only users who had little assets in the liquidity pools did not withdraw their assets and a wide range of users withdrew their assets from the pools.

Swapped Sol to Stablecoins

Now we will examine the SOL swap to stablecoins. Here, our analysis is divided into two categories. First, only the SOL token swap to any of the stablecoins is examined. After that, we will check SOL and Staked SOL swapped to stablecoins. In this analysis, Stabelcoine refers to the 6 stablecoins that are listed below.

Also, the name and address of Staked SOLs examined in this analysis are also given below:

As we saw the increase of SOL withdrawals from pools, swaps from SOL to stablecoins have also increased. The highest number of swaps with more than 62.5K swaps was done on November 8th, but the highest number of swappers and the highest volume of SOL swapped to Stablecoins was done on November 9th. On November 9, approximately 2.7M SOL were swapped to stablecoins by more than 11.3K swappers, of which only 2.2M were done in the Jupiter aggregator. Overall, in the last 10 days, 289K swaps have been done by 30.1K swappers from SOL to stablecoins, the volume of SOL swapped is nearly 7.86M SOL, with an approximate value of 149.3M USD. More than 80% of the total swap volume has been swapped in Jupiter aggregator and nearly 16.6% of the volume of swaps has been done in Radium V4.

More than 1 million staked SOL have also been swapped to stablecoins. The charts below shows the Staked SOL and SOL swapped to stablecoins. Overall, more than 9M SOL and Staked SOL have been swapped to stablecoins with an approximate value of 172.6M USD, 79.8% of the swaps were done in Jupiter aggregator and almost 15% of it in Radium V4. The largest volume of swap is related to the SOL token itself. Between SOL and Staked SOLs swapped to stablecoins, approximately 86.8% of it was from SOL itself, approximately 9% from Marinade SOL, and 4.17%5 from Lido Staked SOL.

The charts below show the distribution of SOLs swapped to stablecoins. Before November 9, most of the swaps were between 10SOL and 100SOL. But since November 9, the largest swap volume has been between 1K SOL and 10K SOL. Overall, over the past 10 days, more than 37.2% of all swaps from SOL and Staked SOL to stalecoins were between 1K SOL and 10K SOL, 27.6% between 100 SOL and 1K SOL, and 25.5% of swaps between 10SOL and 100SOL.

First, we look at the average price of SOL from 10 days ago. Since November 6th, we have seen the decrease in the price of SOL, and in recent days, the price of SOL has reached its lowest level. But what is the relationship between the price of SOL and the volume of staking pools?

Conclusion

According to what was said and shown, the decrease in the price of SOL has had a direct relationship with the decrease in liquidity in liquidity pools. Since November 8th, when users have withdrawn their SOL assets from pools or swapped SOL to Stablecoins, the price of SOL has also decreased sharply.

Written by Mehdi Marjan

Contact With Me

Discord: Mehdi#9668

Twitter: @aghayemarjan

Email: m.meh71@gmail.com

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