Solana (SOL) Under Pressure: How FTX and Alameda’s Unstaking Could Affect the Market
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FTX and Alameda Research have unstaked around $1 billion worth of Solana (SOL), raising concerns about potential selling pressure on the market.
Despite this, Solana’s price has shown resilience, increasing by 3.2% over the past week, reflecting strong market fundamentals.
FTX’s bankruptcy proceedings are stirring ripples through the cryptocurrency waters, and Solana (SOL) is feeling the impact. Recent data from on-chain analytics platform Lookonchain indicates that wallets linked to FTX and Alameda Research have been unstaking significant amounts of SOL, potentially setting the stage for substantial market changes.
FTX and Alameda’s Continued Unstaking of Solana (SOL) Coins
In the past three months, FTX and Alameda Research have unstaked approximately 530,000 SOL, which amounts to around $1 billion worth of the cryptocurrency. This unstaking is not a one-off event; these entities have been unstaking an average of 176,700 SOL per month, with a notable 177,693 SOL unstaked on September 12th.
Despite this heavy flow of unstaked coins, FTX and Alameda’s wallets still hold around 7.06 million SOL, valued at approximately $945.7 million. This figure indicates that while they are actively unstaking, a significant portion remains staked, potentially cushioning the market against immediate volatility. This pattern of heavy unstaking is reminiscent of the activity observed between November and December 2023 when coins were also transferred to Coinbase.
Potential Market Impact
The large-scale unstaking raises concerns about possible selling pressure on Solana. Coins that are transferred to centralized exchanges like Coinbase are often liquidated, adding to market supply. Although some analysts suggest these fears might be exaggerated, the market is cautious. The anticipation of potential sell-offs from these unstaked coins could influence investor sentiment and trading behavior.
Solana’s Market Resilience
Interestingly, despite these potential threats, Solana has demonstrated notable market resilience. According to CoinGecko, SOL’s price has increased by 3.2% over the past week, currently trading at $134. This stability amid speculative fears reflects strong market fundamentals and investor confidence. Solana’s ability to maintain a steady price despite significant unstaking activities indicates that its underlying market support remains robust.
As the situation unfolds, investors should stay alert to further developments but can draw some comfort from Solana’s current market performance. The ongoing unstaking by FTX and Alameda might present challenges, but Solana’s price resilience suggests that it could weather these pressures effectively.
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