Solana’s Price Drops Amidst Heavy Transfers from FTX-Linked Addresses
The price of Solana (SOL) has seen a decline of almost 6% in the last 24 hours, currently trading at around $39.82 according to CoinGecko. This drop is attributed to significant transfers of SOL from FTX-linked addresses, as per data from Solana block explorer Solscan.
Back in September, a court approved the liquidation of $3.4 billion worth of crypto assets, including $1.16 billion in SOL, belonging to the FTX estate after its collapse. The liquidation plan limits the sale of crypto assets to $100 million per week, leading to continued selling pressure on Solana.
Despite this bearish move, Solana still boasts a remarkable 23.9% increase over the past week, outperforming other top 10 cryptocurrencies by market cap.
FTX-Linked Transfers Raise Questions
In the last 24 hours, approximately $10.31 million worth of SOL has been liquidated, with over $7 million coming from leveraged-long traders. Notably, FTX-linked transfers have drawn attention due to their timing coinciding with Solana’s recent price surge.
An address labeled “FTX Cold Storage #2” sent more than 250,000 SOL tokens worth roughly $9.8 million to the crypto exchange Kraken. These transfers were made through an intermediary address before reaching Kraken.
Breadcrumbs analysis tool reveals that the same intermediary address also sent around 300,000 SOL tokens to addresses labeled as Binance.
Uncertainty Surrounding Intermediary Address
The control of the intermediary address remains unclear. Its first on-chain interaction occurred ten days ago when it received over 158,000 SOL from FTX Cold Storage #2. Decrypt’s request for comment from the FTX estate has not yet received a response.
FTX Estate Activity and Market Overview
Since obtaining approval to sell or stake assets in September and appointing Galaxy Digital as overseer, the FTX estate has been actively engaging in these activities. They recently staked $122 million in SOL and $5 million in ETH, followed by sending additional FTX-linked ETH, LINK, AAVE, and MKR to Binance.
In terms of the broader market, Bitcoin and Ethereum have both experienced a 2% decline. Apart from Solana, other notable losers include CoinFlux’s native token and the meme coin PEPE.
Hot Take: Solana Faces Price Decline Amidst FTX-Linked Transfers
After an impressive rally, Solana’s price has taken a hit due to significant transfers from FTX-linked addresses. The court-approved liquidation of crypto assets belonging to the collapsed FTX estate has contributed to selling pressure on Solana. Despite this setback, Solana continues to outperform other top cryptocurrencies in terms of weekly gains. The timing of the transfers raises eyebrows as they coincide with Solana’s recent price surge. The control of the intermediary address involved in these transfers remains uncertain. Meanwhile, the FTX estate has been actively selling or staking its assets, with recent activity including staking SOL and ETH and sending various tokens to Binance. Overall, while Solana faces short-term challenges, its long-term bullish outlook remains intact.
Disclaimer:
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
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