The cryptocurrency exchange FTX recently executed large-scale unstaking of SOL, coinciding with its $16 billion creditor repayment plan. These actions impacted the Solana market, resulting in a substantial price drop.
FTX Funds Offload and Distribution
According to Spot On Chain, FTX/Alameda unstaked and distributed 3.03 million SOL worth $432.5 million to 37 wallets. This move, likely intended for deposits to Coinbase and Binance, marks the largest unstake since November 2023. In total, FTX/Alameda has unstaked and sold 7.83 million SOL worth $986 million since November, at an average price of $125.8.
FTX Creditor Repayment
FTX has initiated its creditor repayment process, with plans to distribute $16 billion in phases. Initially, creditors with claims up to $50,000 will receive $1.2 billion. The repayment began on February 18 at 3 AM UTC, with $6.5 billion to $7 billion being distributed in the first phase. Analyst Miles Deutscher noted that $6—7 billion might re-enter the market, increasing liquidity. Louis Origny, co-founder of FTXcreditor.com, stated creditors with larger claims could receive 175% of their original claims.
Solana Price Movement Analysis
Solana's price on Binance dropped sharply by 20.63% in a session, trading at $141.93. Strong selling pressure and volume increase confirm bearish momentum. Volatility is high, with the price previously testing a support zone from $128 to $155 but failing to sustain above after peaking near $170.
FTX's actions in offloading Solana and commencing creditor repayments have significantly influenced the market, bringing notable selling pressure to Solana. Despite efforts to return funds to investors, the market situation remains unstable.
