Solana’s recent bullish run has taken a downturn, with SOL decreasing by nearly 6% in the last 24 hours and trading at approximately $39.82. This decline is associated with substantial transfers of SOL from FTX-linked Solana addresses, related to the court-approved liquidation of $3.4 billion in crypto assets, including $1.16 billion in SOL, from the FTX estate following its collapse last year.
The court-approved liquidation plan imposes a weekly cap of $100 million on the sale of crypto assets, creating ongoing selling pressure on Solana as long as the liquidation process continues.
Despite a recent dip, Solana maintains a strong overall performance with a 23.9% weekly gain, surpassing other top 10 cryptocurrencies. However, over $10.31 million worth of Solana was liquidated in the past 24 hours, with a significant portion coming from leveraged-long traders. Notably, the timing of FTX-linked transfers, although likely scheduled, could be of interest due to Solana’s recent price surge. Specifically, the address “FTX Cold Storage #2” transferred over 250,000 SOL tokens, valued at about $9.8 million, to Kraken. These tokens passed through an intermediary address before reaching Kraken.
An intermediary address, as revealed by analysis tool Breadcrumbs, transferred approximately 300,000 SOL tokens to Binance-labeled addresses about 20 hours ago. The ownership of this intermediary address remains unclear, with its first on-chain activity recorded ten days ago when it received over 158,000 SOL from “FTX Cold Storage #2.” Despite attempts to contact the FTX estate for clarification, they have not yet responded to Decrypt’s request.
In contrast, the FTX estate has been actively selling and staking assets since gaining approval in September. Recent activity includes staking $122 million in SOL and $5 million in ETH, with further FTX-linked ETH, LINK, AAVE, and MKR being sent to Binance.
The broader cryptocurrency market has shown a bearish trend, with notable drops in Bitcoin and Ethereum prices, each declining by around 2%. Solana remains one of the prominent losers in this scenario, alongside CoinFlux’s native token and the meme coin PEPE.
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