Astheassetredemptionprocesscontinues,FTXhasunstakedover178KSolana(SOL)tokens.Thesetokensareworthmorethan$128million.
ThedecisioncomesaftertheU.S.BankruptcyCourtapprovedFTX’sreorganizationplan,astheexchangeseekstocompensateitscreditorsfollowingthecompany’sbankruptcy.
Thislatestunstackingcontinuesatrendinrecentmonths.FTXredeemsasimilarnumberofSOLtokensbetweenthe12thand15thofeachmonth.
FTX’sRegularSolanaRedemptionsRaiseConcerns
Theunstakingof178,631SOLonOctober15ispartoftheongoingeffortsofFTXtoliquidateassetsandsendbackthefundstothecustomers.ThiscomesafteraU.S.courtgavethenodtoitsreorganizationplanthatseekstogiveoutover$14billiontocreditors.
Intheplan,severaldigitalassetsareidentifiedforsale,withlargevolumesofSolanabeingsoldintheprocess,andsuchliquidationscouldbeseentoputdownwardpressureonthevalueofSOL.
TheSOLstakingaddressofFTX/Alamedaredeemed178,631SOL(US$28million)today,mostofwhichareexpectedtoflowintoCoinbaseorBinance.TheSOLofthisaddressisredeemedandtransferredoutabout170kSOLonthe12thto15thofeachmonth.Currently,thereare7.09…
—WuBlockchain(@WuBlockchain)October15,2024
Forthepastfewmonths,FTXanditssistercompany,AlamedaResearchhasbeusingSOLtokenstoredeemthem.Forinstance,inSeptember2024,thecompaniesunstakedmorethan530,000SOLwhichisapproximately$71million.
Thesetokensweresenttovariouswallets,withapproximately176,700SOLbeingclaimedeverymonth.Nevertheless,FTXandAlamedastillholdabout7.06millionSOLwiththeworthofapproximately$945.7millioninthemiddleofSeptember.
PotentialMarketImpactofFTX’sSOLSales
TheconstantunstakingandthepossibilityofsellinglargeamountsofSOLintheopenmarketmightcausethepriceofthetokentogodown.The178,631SOLrecentlyredeemedbyFTXisbelievedtobesenttomajorexchangessuchasCoinbaseandBinanceandmaybesold.Ifthishappens,theincreasedsupplywillputdownwardpressureontheprice.AsFTXcontinuestoimplementitsreorganizationplanmoreofsuchsalesmayoccur,whichmayputmorepressureonSOLprices.
AsforFTX’sliquidations,SOLmayexperiencesomeshort-termlosses,yetthemarketsentimentisbecomingmorepositive.Inthelast7days,Solanahasbeenontherise,withitspricerisingbymorethan8%.
SolanaPrice
Currently,SOListradingataround$151,a3%declineduetoincreasedmarketfearposttheFTXmove.However,thisupwardmovementmaybetemporaryiftheliquidatedtokenspourbackintothemarket.
StrongFundamentalsCouldSupportSOLDespiteSell-Off
However,asSolana’snetworkcontinuestoexperiencegrowth,thereareindicatorsthatcansupportitspriceevenamidstthecurrentredemptionsatFTX.TheTotalValueLocked(TVL)inSolanaDeFiapplicationshassurpassed$6.1billioninOctober,thehighestlevelsinceJanuary2022.
Thisgrowthshowsthatusersaregainingmoreconfidenceandparticipationontheplatform,whichwouldbenefitSOL’spricedespitetherisingsellingpressure.
TVLSolana
Inaddition,thedailyactiveaddresseshaveincreasedtremendouslywithover4millionnewaddressesbeingcreateddailyontheSolananetwork.ThisincreaseinuseractivityandfreshcapitalinflowsmeansthatthereisasteadyneedforSolana’sserviceswhichmayovershadowthenegativepriceimpactfromtheliquidationofassetsatFTX.
Fromatechnicalpointofview,analystssaythatSolanaisencounteringamajorbarrieratthe$159mark.Ifthetoken’spricemanagestoovercomethisresistancelevelitmayheadtowards$186apricelastseeninJuly2024.
AnalystViewsonSOLPrice
Nonetheless,ifFTXstartstoliquidateunstakedSOLtokenswithoutadequatemarketdemand,SOLmaydropby15%withthehelpofsupportat$131.Ifthissupportlevelcollapses,Solana’spricemaydecline,andmayfalltoaslowas$109.
thecoinrepublic.com