- Solana (SOL) faces a 3% decline as four whale wallets prepare to unlock $200 million in staked tokens, raising concerns about oversupply.
- Meanwhile, the SEC has acknowledged Fidelity’s filing for a Solana ETF, adding some hope for long-term institutional interest.
Solana (SOL) continues to face downward pressure in the crypto market on Friday, with the cryptocurrency dipping over 3% amid growing concerns about an upcoming $200 million unlock. Whale wallets are set to release a substantial amount of staked SOL, heightening concerns about an oversupply that could further dampen market sentiment.
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The current decline in Solana comes as the broader crypto market is already subdued, largely influenced by bearish news surrounding President Donald Trump’s proposed reciprocal tariffs. The news has been a heavy burden on the entire cryptocurrency space, compounding existing worries about SOL’s short-term outlook.
Arkham Intelligence has revealed that four whale wallets are preparing to unlock a significant amount of staked SOL, which could spell trouble for the price of Solana. The upcoming release of 1.79 million SOL, which was initially staked in April 2021 for $37.7 million, represents the largest single-day unlock of SOL until 2028. With this unlock, market participants are concerned that the supply will outpace demand, possibly putting more downward pressure on the token.
At the time of writing, Solana trades at approximately $115, reflecting a more than 3% loss on the day, bringing its weekly decline to over 15%. With this substantial amount of staked SOL set to flood the market, analysts are forecasting further downside for Solana unless demand can match the influx of new supply.
On the regulatory front, Solana did receive some positive news with the U.S. Securities and Exchange Commission (SEC) acknowledging Fidelity’s filing to launch a Solana exchange-traded fund (ETF). This filing, which is now under review, signals growing institutional interest in SOL. However, it remains to be seen whether the SEC will approve the fund, and the decision is expected to take up to 280 days.
As Solana contemplates a difficult weekend with the large unlock event looming, market participants will be closely monitoring the balance between supply and demand, while hoping for more positive developments in the coming months.
