Following a recent market downturn, Solana has seen a significant increase in liquidations, indicating a trend towards decentralized trading protocols.
Liquidations on Solana Post-Market Drop
Solana experienced a sharp increase in liquidations, surpassing $37.4 million on-chain, which is 79% higher than liquidations on centralized exchanges. During the downturn, SOL's price fell to $182.60.
Shift to Decentralized Protocols
Liquidations continued to rise with $29.7 million recorded on centralized markets. The main driver for the shift to decentralized trading protocols has been direct access through the Phantom wallet. Drift Protocol has become the largest decentralized exchange for SOL with over $1.19 billion in total value locked.
Quick Analysis of Whale Positions
As of August 18, 59 whales were holding long positions on SOL, while 70 opted for short positions. The investor known as White Whale holds a long position valued at $79 million with an expectation for market recovery despite overall market caution.
The gradual shift towards decentralized protocols and changes in whale positions could significantly impact the future of Solana and the cryptocurrency market as a whole.
