Solana (SOL) Price Surges Despite FTX’s Asset Liquidation
The price of Solana (SOL) has unexpectedly risen by 4.62% and is currently trading at $18.90, with a market cap of $7.79 billion. This increase comes as FTX, the exchange, prepares to liquidate its assets.
FTX plans to sell a total asset pool valued at $3.4 billion, with significant holdings in Solana (SOL), Bitcoin (BTC), and Ethereum (ETH). Other digital currencies in their portfolio include XRP, Wrapped Bitcoin (WBTC), and Aptos (APT).
Why Solana Won’t Be Affected by FTX’s Selling
While FTX has received court approval for the sale of their crypto holdings, they cannot sell everything at once. They have enlisted Galaxy Holdings to handle the liquidation process gradually over the next few years.
Analyst Michael van de Poppe explains that FTX can sell up to $200 million worth of assets per week to settle their liabilities effectively. The impact of this selling pressure on the markets is likely already priced in.
Interestingly, despite expectations of a significant sell-off in Solana, there has been substantial selling activity in the past week, potentially following a “sell the rumor, buy the news” scenario.
Justin Sun Calls for Unity in Reducing Selling Impact
Tron founder Justin Sun has urged the crypto community to unite and minimize the selling impact on FTX holdings.
Hot Take: Solana Resilient Amidst FTX’s Asset Liquidation
The recent surge in Solana’s price suggests that investors are not overly concerned about FTX’s asset liquidation. While the selling pressure from FTX’s gradual liquidation process may introduce some volatility, the market seems to have already priced in this impact. Solana’s ability to withstand the potential sell-off showcases its resilience and strong investor confidence. As Justin Sun calls for unity within the crypto community, it remains to be seen how FTX’s asset liquidation will ultimately unfold and if it will have any lasting effects on Solana’s performance.
By
By
By
