Solana’s Weekly Plunge Of 10%: Fears of FTX Liquidation Cast Shadows

In a week marked by volatility, the price of Solana (SOL), a prominent cryptocurrency, has experienced a significant drop of approximately 10%. This sudden decline has raised concerns within the cryptocurrency community as fears mount regarding the potential liquidation of substantial holdings by bankrupt crypto exchange FTX.

According to the latest price analysis, SOL’s price stands at $17.83, accompanied by a 24-hour trading volume of $387,488,227, reflecting a 16% increase. Over the past 24 hours, it has experienced a decrease of 2.78%, and on the weekly chart, it has declined by 10.08%.

FTX, amidst financial turmoil, is repor­tedly liquidating a significant portion of its stakes in SOL and other Solana-a­ffiliated cryptocu­rrencies. This close affil­iation between Solana and FTX has greatly impacted the market performance of the former, leading to a consistent downward trend since last year.

SOL, once hailed as a viable competitor to Ethereum, has seen its value plummet by nearly 70% since the fall of Sam Bankman-Fried’s cryptocurrency empire. In the tumultuous year of 2022, Solana recorded a staggering 94% decline in its value. 

However, 2023 appeared to bring a glimmer of hope for the cryptocurrency as it showed signs of recovery. Unfortunately, recent developments suggest that SOL may face another challenging period.

FTX’s Cryptocurrency Holdings On Solana

According to data provided by Solscan, a block­chain explorer for the Solana network, it has been disco­vered that the FTX estate holds a combined total of $1.5 billion in cryptoc­urrency assets within the Solana ecosy­stem. Interes­tingly, among this sum, Solana tokens account for only $128 million.

Most of these assets are SOL-based altcoins like Wrapped Bitcoin (WBTC), Maps token (MAPS), Serum (SRM), and others known as “Sam coins” related to the former FTX CEO, Sam Bankman-Fried.

The possi­bility of liqui­dators potentially releasing $128 million worth of SOL and numerous other SOL-aff­iliated tokens into the market has caused uncer­tainty and unease among cryptoc­urrency inves­tors. This situation may further impact SOL’s already fragile market position. Noneth­eless, the future of SOL remains uncer­tain. Market participants are currently preparing for potential turbu­lence in the upcoming days.

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