The latest increase in Solana’s price is in line with FTX and Alameda’s large SOL transfers this quarter. Might a significant sell-off affect the price?

Although Solana (SOL) has gained over the last week, the market may still be influenced by two significant SOL holders. Spot On Chain, an on-chain analytics company, revealed on Friday that Solana’s price had increased significantly over the past 24 hours. According to CoinGecko data, Solana’s 24-hour spike is around 6% at the time of publication.

According to Spot On Chain, the spike moved SOL’s market valuation above that of Binance Coin (BNB).

This Quarter’s FTX SOL Sales

According to the company’s examination of significant on-chain data, between October 24 and December 14, 2023, FTX and Alameda moved around 13.22 million SOL, or roughly $666 million, to different exchanges. From two public SOL addresses and another address connected to FTX, the company tracked the transactions to exchanges, most likely Coinbase. According to the research, this leaves an estimated 2.08 million SOL available for immediate exchange.

Furthermore, it is stated that just 15.3 million SOL, or 27% of FTX’s entire SOL holdings, have been unlocked. As a result, they supposedly have over 2 million SOL, or $192 million, available for liquidation. This is a substantial enough number to affect SOL’s pricing.

Potential Sell-off’s Effects

According to Spot On Chain, 40.5 million SOL, or 73% of the ownership worth at around $4 billion, would be released gradually and according to plan.

Each month, about 609,000 SOL are unlocked, with a sizable portion scheduled for delivery in early 2025. Spot on Chain determines that it is unlikely that FTX and Alameda’s prospective future sell-offs of SOL will have a major short-term market impact based on this schedule.

Over the previous week, SOL’s price has increased by about 30%. The analytics company did, however, emphasize that FTX and Alameda’s roles as significant SOL holders continue to be important.

CoinGecko valued FTX and Alameda’s SOL holdings at $55.8 million, or $1.16 billion, at the time of FTX’s bankruptcy. SOL was the largest holding, followed by Ethereum (ETH) and Bitcoin (BTC).

SOURCE:
https://medium.com/@therealcryptojk/solanas-sol-market-performance-associated-with-ftx-and-alameda-liquidations-ee888cb5e482