The Solana cryptocurrency continues crashing amid the FTX crisis, plummeting 7% on the news of exchanges halting deposits in Solana-based stablecoins.
Binance crypto exchange announced on Nov. 17 that deposits of Solana-based USDT and USDC have been “temporarily suspended until further notice” on the platform.
The exchange referred to the tokens as “USDT (SOL)” and “USDC (SOL),” as USDT and USDC stablecoins remain available for deposits on Binance on other blockchains.
Binance did not provide more information on the measure, adding that Binance “reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice.”
Other exchanges, including OKX and ByBit, are also among the platforms delisting Solana-based stablecoins for deposits. OKX exchange suspended the tokens’ deposits at 3:00 AM UTC on Nov. 17, while ByBit reportedly disabled such deposits as of Nov. 17 as well.
According to the on-chain data, the supply of Solana-USDC is 62% bigger than the supply of Solana-USDT. The total amount of USDC circulating on Solana amounts to 5 billion USDC ($5 billion), or 11% of the token’s total market capitalization at the time of writing.
The total amount of Solana-based USDT stands at 1.9 billion tokens ($1.9 billion), or just about 1.3% of the total market cap of USDT.
Solana (SOL) is a decentralized blockchain and a cryptocurrency that has been associated with having close ties with Sam Bankman-Fried’s troubled crypto exchange FTX, as Fried was an early investor in Solana via Alameda Research. Amid the ongoing crisis of FTX, SOL has been tanking alongside FTX Token (FTT) and other associated coins.
The latest Solana-USDT and Solana-USDC suspensions on exchanges have triggered even more red for Solana, as the cryptocurrency plummeted 7% on the latest news. At the time of writing, SOL is trading at $13.1, down about 60% over the past 30 days, according to CoinGecko.
Solana 30-day price chart. Source: CoinGecko
This news comes soon after Binance announced plans to remove USDC as a tradable asset from its platform. The exchange allows USDC deposits but automatically converts them to its in-house stablecoin, Binance USD (BUSD).