What was all about the unlock at the 1. ? I thought it‘s gonna crash and sold Everything and now it pumps again like crazy? Man i start to hate this Game
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Era crypto
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Solana supply rises as FTX unlocks 11.2 million SOL worth around $2 billion
Solana’s SOL circulating supply $SOL has increased by 2.2% after 11.2 million SOL tokens were unlocked from the FTX bankruptcy estate. The SOL, worth around $2 billion at current market value, includes a sizable portion of the 41 million SOL tokens that FTX administrators sold at auction during the bankruptcy process.
With the unlock , the SOL circulating supply has reached 507.2 million, according to Coingecko data. Although the unlocked SOL is part of the FTX estate , the exchange has already sold claims to the tokens to several over-the-counter digital assets firms between 2023 and 2024.
At the time, FTX auctioned off most of the tokens at relatively discounted prices. Galaxy bought 25.2 million SOL for $64 in the first auction, while Pantera and other participants in the second auction acquired 13.67 million SOL for $95. Figure Markets and others got 1.8 million SOL for $102 in the third auction.
With SOL now trading at $140 despite losing around 30% of its value this year, all of those who participated in the auction are holding SOL at a profit, leading to speculations that they might decide to dump on the market and take a profit.
SOL falls almost 4% as speculation of sell-off mounts
The speculation of potential selling pressure has already impacted SOL value, with the token down 3.8% today, taking its fall over the last seven days to 19%. Its 24-hour price performance is an outline among several other major cap tokens, with ETH being the only other top ten cryptos by market cap down within that period.
See also Stakers are deactivating their Solana (SOL) deposits as price slides
Despite the general sentiments contributing to the decline, many believe the token will now experience any significant sell pressure from this unlock. Galaxy managing director Kelly Greer noted last week that the market has already shorted the event and priced in the unlocks but added that SOL could see volatility in March.
She said:
“So expect volatility through mid March – embrace it and buy the dip, hedge prior, or hold through it.”
Defiance Capital Founder Arthur , who also participated in the SOL auction through Galaxy, has said that he does not plan to sell after the unlock as he believes that SOL will be worth more in the coming months.
He said:
“Not selling a single one of them. I think it will be substantially higher in 3 months.”
However, not everyone shares this sentiment about the impact of the unlock. Many believe the massive unlock could trigger a SOL sell-off, further impacting its price. The fact that SOL has struggled this year due to multiple memecoin market meltdowns and rug pulls is also not helping those who are bearish on the token.
Solana’s inflation rate
Meanwhile, the inflation of Solana’s circulating supply and several unlocks have led to a new proposal in the Solana Governance Forum to reduce SOL annual issuance by 80%. The proposal, known as SIMD-0228, wants to adjust the SOL inflation rate to ensure that up to 22 million SOL tokens meant to be issued within a year do not get issued.
See also Solana (SOL) trading shifts to Jupiter DEX, Pump.fun fees slow down
Under Solana’s current inflation rate, which is 4.694%, around 27.93 million SOL will be issued this year. The rate is designed to decrease annually until it reaches 1.5%, which is still relatively high compared to Ethereum’s, which has an inflation rate of less than 1%.
However, the proposal has attracted controversies and concerns about how it will affect validators. Despite that, Solana head of staking Ben Hawkins has defended the proposal, noting that the rate was set at an extremely high level when the network launched and should be changed now that the network has seen significant growth.
He said:
“Current inflation imposes an unnecessary cost on SOL holders and creates selling pressure because rewards often must be liquidated to cover tax obligations. This persistent inflation acts as a leaky bucket, unnecessarily diluting SOL’s economic value.”
Hawkins added that the SIMD-0228 will dynamically adjust SOL issuance based on the rate of staking participation to benefit Solana in the long term. At the same time, other effective mechanisms can be used to ensure validators are sustainable.
$SOL
$ETH
With the unlock , the SOL circulating supply has reached 507.2 million, according to Coingecko data. Although the unlocked SOL is part of the FTX estate , the exchange has already sold claims to the tokens to several over-the-counter digital assets firms between 2023 and 2024.
At the time, FTX auctioned off most of the tokens at relatively discounted prices. Galaxy bought 25.2 million SOL for $64 in the first auction, while Pantera and other participants in the second auction acquired 13.67 million SOL for $95. Figure Markets and others got 1.8 million SOL for $102 in the third auction.
With SOL now trading at $140 despite losing around 30% of its value this year, all of those who participated in the auction are holding SOL at a profit, leading to speculations that they might decide to dump on the market and take a profit.
SOL falls almost 4% as speculation of sell-off mounts
The speculation of potential selling pressure has already impacted SOL value, with the token down 3.8% today, taking its fall over the last seven days to 19%. Its 24-hour price performance is an outline among several other major cap tokens, with ETH being the only other top ten cryptos by market cap down within that period.
See also Stakers are deactivating their Solana (SOL) deposits as price slides
Despite the general sentiments contributing to the decline, many believe the token will now experience any significant sell pressure from this unlock. Galaxy managing director Kelly Greer noted last week that the market has already shorted the event and priced in the unlocks but added that SOL could see volatility in March.
She said:
“So expect volatility through mid March – embrace it and buy the dip, hedge prior, or hold through it.”
Defiance Capital Founder Arthur , who also participated in the SOL auction through Galaxy, has said that he does not plan to sell after the unlock as he believes that SOL will be worth more in the coming months.
He said:
“Not selling a single one of them. I think it will be substantially higher in 3 months.”
However, not everyone shares this sentiment about the impact of the unlock. Many believe the massive unlock could trigger a SOL sell-off, further impacting its price. The fact that SOL has struggled this year due to multiple memecoin market meltdowns and rug pulls is also not helping those who are bearish on the token.
Solana’s inflation rate
Meanwhile, the inflation of Solana’s circulating supply and several unlocks have led to a new proposal in the Solana Governance Forum to reduce SOL annual issuance by 80%. The proposal, known as SIMD-0228, wants to adjust the SOL inflation rate to ensure that up to 22 million SOL tokens meant to be issued within a year do not get issued.
See also Solana (SOL) trading shifts to Jupiter DEX, Pump.fun fees slow down
Under Solana’s current inflation rate, which is 4.694%, around 27.93 million SOL will be issued this year. The rate is designed to decrease annually until it reaches 1.5%, which is still relatively high compared to Ethereum’s, which has an inflation rate of less than 1%.
However, the proposal has attracted controversies and concerns about how it will affect validators. Despite that, Solana head of staking Ben Hawkins has defended the proposal, noting that the rate was set at an extremely high level when the network launched and should be changed now that the network has seen significant growth.
He said:
“Current inflation imposes an unnecessary cost on SOL holders and creates selling pressure because rewards often must be liquidated to cover tax obligations. This persistent inflation acts as a leaky bucket, unnecessarily diluting SOL’s economic value.”
Hawkins added that the SIMD-0228 will dynamically adjust SOL issuance based on the rate of staking participation to benefit Solana in the long term. At the same time, other effective mechanisms can be used to ensure validators are sustainable.
$SOL
$ETH
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