Solana (SOL) has seen a significant decline in price and activity. Investors are concerned about potential sell-offs following a large withdrawal.
Whale Activity Sparks Sell-Off Fears
Blockchain analysis platform Lookonchain reported a whale unstaking 1,366,028 SOL, worth about $198 million, and transferring it to FalconX. FalconX then sent 440,202 SOL ($62.6 million) to Binance and Coinbase, raising concerns over a potential sell-off.
Plummeting Transfer Volume on Solana
Another major concern is the drastic decline in Solana’s overall transfer volume. Analyst Ali Martinez notes that SOL's transfer volume plummeted from $1.99 billion in November 2024 to just $14.57 million now, undermining investor confidence.
Price Volatility and SOL's Future
SOL's price has dropped almost 40% over the past month, reaching $140.54. This is significantly lower than its 2024 peak of $264. While the price crash is part of a broader market downturn, the question remains whether SOL can recover from this shock.
Recent developments have heightened uncertainty among Solana investors. The future of this cryptocurrency remains uncertain amidst low transfer volumes and market activity.
