Catastrophic $1 Billion Solana (SOL) Selling Wave Incoming?

As a seasoned researcher with a decade of experience navigating the intricacies of the crypto market, I’ve seen my fair share of ups and downs. The recent news about FTX unstaking a substantial amount of SOL has piqued my interest, and while it may cause some initial anxiety, I believe it is important to approach this situation with a level head and a well-informed perspective.


As a researcher studying the cryptocurrency market, I find myself concerned about the future of Solana (SOL) given the recent decision by FTX to unstake such a significant amount of this asset. With reports suggesting that FTX currently holds approximately $1 billion in Solana, their actions may signal an upcoming surge in sales which could potentially exert considerable downward pressure on the price of SOL. This is a situation I will be keeping a close eye on.

While this development may bring about some worry, it doesn’t necessarily mean panic is warranted at this time. The experts handling FTX’s asset liquidation are expected to conduct these sales through market makers, which should help minimize the potential negative impact on Solana’s value.

As an analyst, I’ve observed a significant movement in the Solana (SOL) ecosystem. Over the past three months, FTX/Alameda has gradually unstaked approximately 530,000 SOL, amounting to about $71 million, and transferred these tokens to various wallets. This averages around 176,700 SOL ($23.5 million) per month.— Lookonchain (@lookonchain) September 13, 2024

To prevent sudden dips or excessive price fluctuations, market makers will probably have a crucial impact by skillfully managing the sale’s liquidity. In doing so, the market can effectively withstand selling pressure and avoid major interruptions.

In addition, FTX’s liquidation process will be carried out in a careful and step-by-step manner, minimizing the risk of dumping an excessive number of SOL tokens onto the market all at once. The cautious management of the sale aims to lessen the impact on the market, even with a significant amount involved.

While there could be temporary fluctuations in Solana’s price, the handling of FTX’s liquidation might help maintain a level of market stability to some extent. The measures being implemented offer reassurance that extreme scenarios can potentially be prevented, but it is advisable for traders and investors to brace for potential bearish volatility in Solana.

Currently, Solana isn’t demonstrating any bullish momentum in the market. It seems more probable that the current short-term upward trend will lead to a sell-off, rather than the downward trend we’re observing with SOL at present.

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2024-09-13 14:02