Solana’s bullish momentum continues to hold strong, even as a wallet linked to the now-defunct FTX exchange unstaked nearly $24 million worth of SOL. This development comes amid concerns that FTX’s bankruptcy might lead to significant sell-offs of the cryptocurrency. Despite the fear of potential market turbulence, Solana has shown resilience, keeping its upward trajectory intact.
FTX Unstakes Millions In SOL – Is A Sell-Off Coming?
The crypto community has been on alert since the collapse of FTX, which held substantial shares of Solana. On Wednesday, a wallet address tied to FTX and its trading arm Alameda Research unstaked 177,693 SOL, valued at approximately $23.75 million, according to data from Solscan.
While the funds haven’t yet been moved to any exchange, speculation of an imminent sell-off has sparked concerns. Typically, unstaking such large sums can be a precursor to liquidation, particularly when assets are transferred to centralized exchanges.
However, what’s more alarming is that the recently unstaked SOL is only a small portion of the total Solana still tied to the FTX-Alameda wallet. The same address holds an eye-watering 7.1 million SOL, worth nearly $953 million, representing 1.5% of Solana’s entire circulating supply. The potential liquidation of this stash could have a massive impact on Solana’s price.
For context, similar sell-offs have wreaked havoc in the market before. In August, Jump Trading sold over $400 million worth of Ethereum, causing ETH to plunge below $2,336. Many fear a similar fate for Solana if FTX’s assets are dumped.
Solana’s Price Resilience Amid Market Jitters
Despite the speculations, Solana has shown remarkable strength. While concerns over the potential sale swirl, SOL’s price climbed 2.5% over the past 24 hours, trading at $135.26 at the time of writing. This price surge underscores the unshaken bullish sentiment surrounding Solana, even in the face of potential headwinds.
The continued optimism could be linked to several factors, including the upcoming Breakpoint event, which promises to boost the Solana ecosystem, and the broader market recovery. The Solana community appears undeterred by the possibility of a significant sell-off, with CoinMarketCap data revealing that 77% of Solana community voters remain bullish on the asset.
Interestingly, Solana’s bullish sentiment stands out among top cryptocurrencies. While Bitcoin and Ethereum have recently seen bearish sentiment from their respective communities, Solana has emerged as one of the few assets maintaining a strong positive outlook.
The Road Ahead for Solana
Solana’s ability to weather these market challenges demonstrates its resilience as a top-tier cryptocurrency. However, the looming question remains: what happens if the FTX-linked wallet begins offloading its substantial holdings? Such a move could send shockwaves through the market, but for now, Solana continues to march forward.
Also Read: Solana Hits 5.4M Daily Wallets – Popcat Surges Past $600M Market Cap And SOL Eyes $400 Target
In the short term, market observers will be watching closely for any further developments from the FTX-related wallet. Until then, the Solana community remains confident in the blockchain’s long-term potential and its ability to overcome any market turbulence. With bullish sentiment still high, Solana looks set to maintain its upward trajectory—for now.
Despite the potential risk of a massive sell-off from the FTX/Alameda-linked wallet, Solana’s bullish outlook remains intact. With strong community support and positive market movements, Solana continues to defy bearish predictions. Whether this trend will continue depends largely on what happens next with the FTX-related wallet’s holdings, but for now, Solana’s resilience stands out in the volatile crypto landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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