![](https://cdn.publish0x.com/prod/fs/images/27f8d489cf876bf32b8e10b3c6b723b701027a574f6195566073d861ca2247d7.jpg)

**Collateral Damage**

[Solana](https://sapphirecrypto.org/2022/11/20/solana-still-a-potential-investment/) fans must be extremely disappointed as the [FTX debacle](https://sapphirecrypto.org/2022/11/11/the-ftx-collapse-what-matters-now/) continues to haunt and decay a once flourishing ecosystem. Next to ETH, Solana was primed for greatness and mass adoption. It’s no secret that Sam Bankman-Fried’s endorsement and investment in Solana helped propel the [blockchain](https://leofinance.io/@leoglossary/blockchain) into the Top 10.

However, that is no longer the reality. SOL has been on a steady collapse and is about to fall out of the Top 20. Solana is a classic case of collateral damage and reveals exactly how destructive [centralization](https://leofinance.io/@leoglossary/leoglossary-centralization) can be. It is important to note that this is all unfolding due to “association” and a lack of [decentralization](https://leofinance.io/@leoglossary/leoglossary-decentralization). There are pros and cons to everything.

Relying on strong backing via [VCs](https://leofinance.io/@leoglossary/leoglossary-venture-capital-vc) and other heavy hitters is great until something goes wrong. A more decentralized distribution of SOL would have rendered FTX’s collapse a lot less catastrophic. Sadly, this is not the case. FTX acquired a large portion of Solana’s circulating supply, ultimately, holding the chain captive.

How far Solana continues to fall is anyone’s guess. My first expectation is between $5 and $7. However, depending on how badly the development on the chain continues to deteriorate, a dollar is also realistic. Fortunately, this collapse hasn’t affected me. I picked up my first SOL under a dollar and have been [short](https://leofinance.io/@leoglossary/leoglosasry-short-selling) for much of this collapse.

I am still short. The past 24 hours have really put some amazing distance between my entry and the current price. I usually adjust stop losses once a position is in profit. This ensures that an unexpected move contrary to my position cannot steal my gains or plunge me into a loss. [Trading 10X can do that](https://sapphirecrypto.org/2022/12/05/trading-strategy-adjustment-is-this-going-to-work/) very quickly, especially in Crypto.

**Ethereum Is Worse**

The centralization of Solana has been its downfall, where once it was actually its glory. However, Ethereum is now a lot more centralized than Solana. As I have mentioned, [my exposure to ETH from here on will be minimal](https://sapphirecrypto.org/2022/09/20/eth-just-made-me-more-bullish-on-certain-layer-1-alternatives/). I managed a decent buy during the covid crash at approximately $100, so I am pleased with my time in Ethereum.

![](https://i0.wp.com/sapphirecrypto.org/wp-content/uploads/2022/11/Facebook-Shop-2022-11-20T141819.369.jpg?resize=698%2C524&ssl=1)

As I have also mentioned, I exited the majority of my ETH between $4500 and $3500. I am not that concerned about the current layer 1 blockchains. I am choosing to watch from the sidelines. Very modest accumulation however continues for [Cardano](https://sapphirecrypto.org/2022/11/18/cardano-looking-more-like-the-obvious-choice-for-2025/) and a few others. Blockchains like Hive, [Ravencoin](https://sapphirecrypto.org/2022/12/27/the-tokenization-of-real-world-assets-a-blockchain-to-empower-it/), and other under-the-radar projects are gaining my attention.

Ethereum is much like Bitcoin now, the real gains have been realized. A lot of investors talk about when Ethereum will hit $10K. That’s not even a 10X. I enjoyed 35X to 45X on ETH during the last [bull market](https://leofinance.io/@leoglossary/leoglossary-bull-market). I am not going to get that again. So, I am looking elsewhere.

**Final Thoughts**

There is a lot to take away from the Solana collapse. It is equally important to meditate and consider scenarios and situations. There are too many hot-headed investors in this space. Take a step back, relax, and consider your next steps from here.

This also applies to trading. [Overtrading is a very real problem](https://www.investopedia.com/terms/o/overtrading.asp) for many traders. A calm and thoughtful approach gives you an unparalleled advantage. Until the next one, stay the course!

![Facebook Shop 30.jpg](https://i.imgur.com/HB54HgH.jpg)

**Disclaimer**

First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.

This article was first published on [Sapphire Crypto](https://sapphirecrypto.org/2022/12/28/solana-a-lesson-in-decentralization/).

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@sapphirecrypto/solana-a-lesson-in-decentralization)