2024

Solana

Impact

Billion

Coin

<p>In the wake of FTX’s fall, the cryptocurrency community was left with many outstanding questions, one of which is currently developing in the Solana ecosystem. FTX and Alameda Research are unstaking more than $ 1 billion of SOL tokens, raising fears over the readiness of the market to absorb such a sell off. </p> 
<p>There was already sufficient pricing pressure on Solana from the broader crypto market. And the movement of such a huge amount of tokens could add speculation into the otherwise stable Solana.</p> 
<h2 class="wp-block-heading" id="h-ftx-unstaking-over-1-billion-solana"><strong>FTX Unstaking Over $1 Billion Solana</strong></h2> 
<p>As of September 13, Lookonchain, a blockchain analytics platform, <a href="https://x.com/lookonchain/status/1834498508478693526">revealed</a> that FTX and Alameda Research wallets have been unstaking large scales of solana for several months.</p> 
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   <p lang="en" dir="ltr">Over $1B worth of <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SOL</a> is being unstaked by FTX/Alameda!<br><br>In the past 3 months, FTX/Alameda has unstaked 530K <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SOL</a>($71K) and transferred it to multiple addresses, averaging 176.7K <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SOL</a>($23.5M) unstaked per month.<br><br>FTX/Alameda still has 7.06M <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SOL</a>($945.7M) staked.… <a href="https://t.co/lhfVDsEc99">pic.twitter.com/lhfVDsEc99</a></p>— Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1834498508478693526?ref_src=twsrc%5Etfw">September 13, 2024</a>
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<p>In total, since June these wallets have unstaked an average of 176,700 SOL per month.This adds up to about 530,000 SOL, approximately 70.7 million US dollars.</p> 
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<p><em>Source: <a href="https://solscan.io/account/H4yiPhdSsmSMJTznXzmZvdqWuhxDRzzkoQMEWXZ6agFZ#transfers">Solscan</a></em></p> 
<p>On September 12, a particularly large transaction of 177,693 SOL was unstaked. That brought attention back to FTX’s significant remaining holdings of 7.06 million SOL, worth an estimated $945.7 million. As previously reported by The Coin Republic, <a href="https://www.thecoinrepublic.com/2024/08/03/8-of-solanas-supply-is-with-ftx-can-sol-price-dip/">FTX reportedly holds at least 8%</a> of the entire Solana supply.</p> 
<p>The question now is whether these unstaked assets will be sold or redistributed. And how such actions could impact Solana’s market performance.</p> 
<h2 class="wp-block-heading" id="h-impact-on-solana-s-market">Impact on Solana’s Market</h2> 
<p>Large-scale unstaking activities like this often send shockwaves through the market, especially if the unstaked coins are sold quickly. The risk is that such sales could trigger a flood of supply, overwhelming buyers and leading to downward price pressure.</p> 
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  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Over $1B worth of <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SOL</a> is being unstaked by FTX/Alameda!<br><br>In the past 3 months, FTX/Alameda has unstaked 530K <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SOL</a>($71K) and transferred it to multiple addresses, averaging 176.7K <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SOL</a>($23.5M) unstaked per month.<br><br>FTX/Alameda still has 7.06M <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SOL</a>($945.7M) staked.… <a href="https://t.co/lhfVDsEc99">pic.twitter.com/lhfVDsEc99</a></p>— Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1834498508478693526?ref_src=twsrc%5Etfw">September 13, 2024</a>
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<p>Historically, when tokens are moved to centralized exchanges like Coinbase, it indicates they are likely to be sold. However, despite the growing fears of a massive sell-off, Solana’s market has shown resilience, at least for now.</p> 
<p>Market participants are cautiously optimistic. However, the threat of FTX offloading such a massive portion of Solana remains a looming concern. Even speculative fears can have a domino effect on the market, exacerbating volatility.</p> 
<p>Despite the potential overhang of FTX’s unstaking activities, Solana has managed to maintain stability. According to Coinmarketcap, SOL has seen a modest 4.2% rise in price over the last week, standing at $134 at the time of writing. </p> 
<p>This resilience is notable, particularly as other major cryptocurrencies have experienced higher volatility during the same period. <a href="https://www.thecoinrepublic.com/2024/09/12/solana-price-jumps-3-as-perp-dexes-see-record-growth/">Solana’s ecosystem continues to expand</a>, with strong developer activity and rising adoption across sectors like NFTs and DeFi. </p> 
<p>This growth may be helping to counterbalance the possible negative effects of the unstaking. In addition, market confidence in Solana’s long-term fundamentals appears to be shielding it from short-term disruptions.</p> 
<p>The post <a href="https://www.thecoinrepublic.com/2024/09/13/ftx-unstaking-1b-solana-coins-will-the-market-react/">FTX Unstaking $1B Solana Coins—Will The Market React?</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.</p>

FTX Unstaking $1B Solana Coins—Will The Market React?

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