FTX Ready to Dump 177,693 Solana Coins After Recent Staking Unlock

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen bull runs and bear markets come and go. The recent movement of Solana tokens by the FTX/Alameda-affiliated wallet has sparked quite a discussion in the crypto community.

The digital wallet identified as H4y…gFZ, rumored to be linked with FTX or Alameda, has recently withdrawn a sum of 177,693 Solana tokens from the Solana Proof-of-Stake (PoS) network. It is worth noting that crypto exchange FTX was among the largest holders of Solana (SOL) coins and subsequently liquidated a significant portion during the market crash in November 2022.

Will FTX Dump All Solana Coins to CEXs?

According to Solscan records, it appears that an FTX/Alameda associated wallet moved approximately $23.75 million in Solana tokens from their Proof-of-Stake network today. This action has sparked significant debate within the cryptocurrency community about the possibility of these redeemed SOL being transferred to centralized exchanges in the coming days.

Despite the recent activity, the amount of Solana tokens this wallet holds is still significant relative to its total holdings. Specifically, the FTX wallet with the address H4y…gFZ currently stakes approximately 7.057 million SOL, worth around $943 million. It’s also been speculated that a large portion of Solana coins managed by crypto exchange FTX may have been offloaded through private, over-the-counter transactions.

The current Solana (SOL) price maintains its strength, currently sitting at $135, a 1.93% increase, while boasting a market capitalization of $63.57 billion. Since the start of 2024, the SOL price has surged by 35%. Remarkably, it’s also more than six-and-a-half times higher when compared to its yearly chart.

The transfer of SOL by a wallet linked to FTX/Alameda has occurred just before Caroline Ellison, the ex-CEO of Alameda, is set to attend a hearing on September 24. It’s been reported that her assistance and testimony could potentially lead to leniency in her sentencing duration.

Will SOL Price Rally Continue In 2024?

Following a significant increase in 2023, Solana (SOL) has provided relatively small profits this year in 2024. After reaching an impressive high of $209 in March, coinciding with Bitcoin‘s new record peak, SOL has started to trend downwards. At present, the price of SOL is building a foundation at approximately $130, suggesting it may reverse its direction moving forward.

To push the Ethereum rival’s price upward, several key factors must align, such as network improvements, revival of meme coins, increased institutional investments, and potential ETF approvals. The Solana meme coin craze significantly boosted its price to reach $200 in March. If we observe growth in multiple areas, it might lead the SOL price to potentially reach $1000 by 2025.

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2024-09-12 07:47