FTX Sells $23.75 Million Worth of Solana from Staking; Will It Impact Solana SOL’s Price?
FTX recently unlocked 177,693 Solana (SOL) tokens worth $23.75 million, sparking concerns of potential selling pressure within the crypto community.
Despite the staking unlocks, SOL's price has remained steady, rising slightly in the past 24 hours.
However, market participants watch closely for the outcome of this token redemption, as FTX's extensive holdings have previously affected SOL's price.
FTX Unstakes $23.75 Million Worth of Solana (SOL)On Wednesday, a wallet linked to FTX and Alameda unstaked 177,693 SOL tokens. The unstaked tokens, worth $23.75 million, have not yet been transferred to a centralized exchange for sale.
Despite this substantial redemption, data from Solscan shows the FTX wallet H4yi...agFZ" has more than 7 million Solana (SOL) staked, worth about $943 million. This makes FTX one of the largest holders of Solana tokens.
While a significant portion remains staked, the recent unlock sparked discussions in the crypto world. Many fear that selling such a large amount could negatively impact Solana's price.
Historically, unstaked tokens often move to exchanges for liquidation. Given the scale of FTX's holdings, any substantial movement in tokens could significantly impact SOL's price.
Despite the sizable unstaking event, Solana's price remains stable, suggesting that the market has yet to react strongly to the news. SOLtradesat around $134, up 2.88% over the last 24 hours.
With a market value of $62.8 billion, Solana remains the world's 5th largest cryptocurrency.
Speculation About FTX's Next MovesThe timing of the unstaking aligns with a hearing for former Alameda CEO Caroline Ellison, set for later this month. Reports indicate that Ellison's cooperation in legal matters could lead to a reduced sentence.
This development has further fueled speculation around FTX's token movement and the potential sale of SOL. If FTX were to transfer the unstaked SOL to exchanges, it could trigger a wave of selling pressure, driving prices down.
However, FTX may not sell these tokens on the open market. Given the size of FTX's holdings, a large sell-off could have significant implications for Solana's market cap and price stability.
For context, FTX's holdings of SOL account for roughly 1.5% of Solana's circulating supply. This level of control over the token has led some to compare FTX's holdings to similar cases involving Ethereum.
For example, when Jump Trading began selling large amounts of Ethereum, the asset's price fell below $2,336 in August.
Jump Trading started selling $ETH again!
He claimed 11,501 $ETH($29.11M) from #Lido and transferred it out for sale.
Then he also applied to redeem 19,049 $ETH($48.22M) to prepare for selling.
Jump Trading currently has 21,394 $wstETH($63.6M) left.https://t.co/zqdVtG5apF pic.twitter.com/YbsO53wA7l
- Lookonchain (@lookonchain) August 7, 2024
Lookonchain said Jump Trading sold more than 80,000 wstETH tokens between July 24 and August 5.
Solana's User Activity Hits New HighsJump Trading is selling 120,695 $wstETH($481M) and has sold 83K $wstETH($377M) since July 24, leaving 37,604 $wstETH($104M).
The market also began to fall after July 24, falling by more than 33%!
According to reports on June 20, the US #CFTC is investigating Jump Trading.... pic.twitter.com/pOoGZknUDh
- Lookonchain (@lookonchain) August 5, 2024
Despite the dumping, Solana's daily active addresses have surged to 5.4 million. Increased usage often boosts token demand, potentially pushing prices upward.
The rise in active users and transactions suggests potential upward price movement. However, breaking the $140 resistance is critical for sustained gains.
If Solana's network strength continues, the token could see upward momentum. This is supported by the CMF, which currently has 0.16. Also, the MACD is over its signal line, displaying green histogram bars.
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