Dacity Coin
streamoors
Celestia
Injective
Quantus
Pudgy Penguins
Pearl
- On October 15, FTX unstaked 178,631 SOL as part of its ongoing asset liquidation to repay creditors following bankruptcy approval.
- Despite regular monthly SOL redemptions, FTX and Alameda still hold 7.06 million SOL. It is valued at $945.7 Million as of mid-September 2024.
- Solana’s DeFi Total Value Locked (TVL) reached $6.1 Billion in October. It is the highest since January 2022, showcasing robust network growth and increased user engagement.
Solana (SOL), a prominent layer-one blockchain, remains connected to the defunct FTX and Alameda Research nearly two years after their collapse. As FTX gears up to repay its investors in Q4 2024, it was much anticipated that it would escalate its selling of Solana coins to gather the required funds.
In the ongoing asset redemption process, FTX unstaked over 178,000 Solana (SOL) coins, valued at more than $28 Million. This move follows the approval of FTX’s reorganization plan by the U.S. Bankruptcy Court. The exchange aims to compensate its creditors post-bankruptcy.
This recent unstaking is part of a consistent pattern observed in recent months. Following this, FTX redeemed several SOL coins between the 12th and 15th of each month.
FTX’s Selling Solana Coins Raises Eyebrows
A recent transaction by FTX/Alameda caught the crypto community’s attention. The company redeemed 178,631 SOL coins worth $28 Million on October 15.
This move is part of FTX’s ongoing efforts to liquidate assets and return funds to its customers. The liquidation plan includes several digital assets, with significant volumes of Solana being sold. It potentially exerted downward pressure on the Solana (SOL) price value.
On-chain analyst Ember noted that these coins were previously staked as part of Solana’s proof-of-stake system. They are likely to be transferred to major exchanges like Coinbase or Binance.
This large movement aligns with a recurring pattern. FTX and its sister company, Alameda Research, regularly transfer around 170,000 SOL coins each month.
Approximately 7.06 million SOL coins, valued at over $945 Million, remain staked at the H4y…gFZ address.
Moreover, if FTX continues with its reorganization plan, the ongoing unstaking of SOL will likely persist. This could increase the supply of SOL, potentially exerting downward pressure on its price.
How Did Recent Activity in Solana (SOL) Price Led To Uncertainty?
Despite the potential for short-term losses due to FTX’s liquidations, market sentiment around Solana is becoming more optimistic. Over the past week, Solana’s price has surged by over 17.50%.
At the time of writing, the Solana (SOL) Price is trading around $155, showing a modest 1% increase. This limited movement over the past 24 hours is likely due to heightened market fears following FTX’s actions.
Additionally, the price struggled near the neckline of the inverted head and shoulders. This adds to the pessimism caused by FTX’s renewed market activity. The current market dynamics create uncertainty for the future movement of Solana (SOL) price.
Amid FTX’s Unstaking, Could SOL’s Price Receive Backing By Its Strong Fundamentals
Despite the ongoing redemptions at FTX, Solana’s network growth presented promising indicators that could support its price.
In October, the Total Value Locked (TVL) in Solana’s DeFi applications exceeded $6.1 Billion. It has marked the highest level since January 2022.
This surge reflected growing user confidence and participation on the platform. That could bolster the Solana (SOL) price despite the increased selling pressure.
Additionally, the number of daily active addresses on the Solana network has surged. It has gained over 4 million new addresses being created daily.
This rise in user activity and fresh capital inflows indicated a sustained demand for Solana’s services. This could potentially mitigate the negative price impact from FTX’s asset liquidations.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
