- FTX's Asset Sale and Market Impact
- Liquidity Issues and Federal Scrutiny
- Solana's Prospects and Recent Positive Developments
FTX's continued offloading of its massive Solana holdings has experts worried about a potential market crash.
FTX's Asset Sale and Market Impact
FTX and its affiliate Alameda Research have recently sold substantial amounts of Solana tokens. Over the past three months, 530,000 SOL worth about $71,000 have been unstaked, averaging 176,700 SOL or $23.5 million per month. While a significant portion has been liquidated, 7.06 million SOL, valued at $945.7 million, remains staked.
Liquidity Issues and Federal Scrutiny
Since the exchange collapsed in November 2022, FTX has been gradually selling its Solana holdings, with some sales potentially occurring over the counter (OTC) to reduce the impact on market prices. Additionally, FTX has offloaded $1 billion worth of Grayscale Bitcoin Trust's (GBTC) shares following the approval of spot Bitcoin exchange-traded funds (ETFs). These liquidation efforts are drawing increased scrutiny from federal authorities. Caroline Ellison, the former CEO of Alameda Research and an ex-partner of Sam Bankman-Fried, is set to be sentenced on September 24 for her role in the collapse, having accepted all charges in a plea deal.
Solana's Prospects and Recent Positive Developments
Solana is struggling amid FTX's asset sales. The blockchain's on-chain activity has waned, with decentralized exchange (DEX) volumes within the Solana ecosystem hitting a six-month low at $7.7 billion, according to data from Dune Analytics. Technically, Solana is at a crucial juncture. After losing support at its 200-day exponential moving average (EMA), the token's price hovers around $127. Analysts caution that a break below $126 could lead to further declines, potentially sending prices toward the $92 to $110 range. Still, Brazil's recent approval of the world's first Solana spot exchange-traded fund (ETF) signifies a growing acceptance of digital assets within the traditional financial framework.
FTX's ongoing asset liquidations keep the Solana market on edge, but recent positive developments may promote further growth and innovation in the industry.
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