As FTX continues to liquidate its extensive Solana (SOL) assets, reports indicate that the bankrupt exchange still has over $1 billion in tokens left to sell.
This substantial quantity of tokens may impact Solana’s market value, with on-chain data indicating a waning interest.
Increased Selling Pressure on Solana as FTX Divests Tokens
According to blockchain analytics company LookOnChain, FTX and its affiliate, Alameda Research, have already unlocked significant amounts of their Solana tokens. Over the last three months, they have unstaked 530,000 SOL, approximately worth $71,000, with a monthly average of about 176,700 SOL, or $23.5 million.
Despite these movements, 7.06 million SOL, worth around $945.7 million, remains staked.
Prior to the exchange’s collapse in November 2022, FTX had a notably strong partnership with Solana. Following its downfall, SOL prices dropped to as low as $8, contributing to broader market volatility.
Since then, FTX has been gradually selling its Solana holdings, with some transactions likely occurring over-the-counter (OTC) to reduce price impact.
FTX’s ongoing divestment of its crypto assets is occurring amidst increased scrutiny from federal authorities. Caroline Ellison, the former CEO of Alameda and one-time partner of Sam Bankman-Fried, is set to be sentenced on September 24 for her role in the exchange’s collapse. Ellison has previously accepted all charges against her as part of a plea agreement.
While Solana’s foundation remains linked to FTX’s liquidation, the blockchain has experienced a downturn in on-chain activity. Last week, the ecosystem disclosed its lowest weekly decentralized exchange (DEX) volumes in six months at $7.7 billion, according to Dune.
This contrasts sharply with March’s volumes, which were 50% greater than those of Ethereum during that period.
From a technical standpoint, Solana’s price is at a critical juncture. After losing support from its 200-day exponential moving average (EMA), the price is currently around $127.
Analysts caution that a fall below $126 could trigger further declines, potentially directing the price toward the range of $92 to $110.
Read more: Solana (SOL) Price Prediction 2024/2025/2030
As FTX proceeds to liquidate its Solana tokens, market participants remain vigilant, anticipating the next developments in the ongoing liquidation saga of the exchange.
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