Solana is experiencing significant price declines as a result of the upcoming unlock of 11.2 million tokens associated with FTX, scheduled for March 1, 2025.
Solana Price Drops Below $160
Solana's price fell below $160 for the first time in 2025, last seen at $159.64 on October 20, 2024. Over the past month, it dropped more than 35%, with a current market cap of $78 billion and fully diluted valuation of $95 billion.
FTX Unlock: A Supply Shock on the Horizon
The upcoming unlock by FTX involves releasing 11.2 million SOL tokens, worth approximately $1.77 billion. This event is expected to increase market supply, potentially leading to selling pressure and further price drops. Investors fear that FTX could trigger a significant market sell-off, given the basic economic principle of supply and demand.
Volatility in SOL Options Data
Derivatives markets also show signs of caution. Data from Amberdata reveals that SOL block trades on Deribit accounted for nearly 25% of all Solana options activity, totaling $32.39 million out of $130.74 million.
Solana prices continue to decline as investors brace for significant events, such as the FTX unlock. The market remains tense in anticipation of potential supply increases.
