A busy 24 hours for FTX-linked addresses, with many significant Solana transfers destined for some of the industry’s largest exchanges.
Solana appears to be returning to Earth after flying high in recent weeks.
According to CoinGecko, SOL is down over 6% in the last 24 hours and is currently trading at roughly $39.82.
Solana Price Chart | Source: Coinstats
According to data from Solana block explorer Solscan, the bearish move coincides with some large SOL transfers from FTX-linked Solana addresses. A court approved the liquidation of $3.4 billion in crypto assets, including $1.16 billion in SOL, belonging to the FTX estate—the remains of Sam Bankman-Fried’s crypto business after its collapse last year—in September.
The court-approved liquidation plan established a weekly cap of $100 million in crypto assets, which is likely to keep Solana under pressure for the duration of the process.
The overall picture remains positive for the token, as it has increased by a staggering 23.9% in the last week, considerably surpassing the rest of the top ten largest cryptocurrencies by market cap.
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Approximately $10.31 million SOL has been liquidated in the last 24 hours. More over $7 million of that total came from leveraged-long traders.
The timing of the FTX-linked transfers, while apparently preplanned, may still raise eyebrows considering the token’s recent price surge.
According to Solana block explorer Solscan, the address labeled “FTX Cold Storage #2” transmitted more than 250,000 SOL tokens to the crypto exchange Kraken late last night, valued at around $9.8 million at press time. Before arriving at Kraken, the transactions were routed through an intermediate address.
According to the analytical tool Breadcrumbs, that same intermediate address delivered over 300,000 SOL tokens to addresses branded as Binance about 20 hours ago.
It is unknown who owns the intermediate address in question. It had its first on-chain contact 10 days ago, when it received almost 158,000 SOL from FTX Cold Storage #2. The FTX estate did not react immediately to Decrypt’s request for comment.
The FTX estate has been busily selling or staking assets since receiving authority to do so in September and appointing Galaxy Digital to handle that work. The estate recently invested $122 million in SOL and another $5 million in ETH. More FTX-linked ETH, LINK, AAVE, and MKR were delivered to Binance shortly after.
The remainder of the market, on the other hand, has been relatively gloomy. Bitcoin and Ethereum, two of the most valuable assets, have fallen by almost 2% overnight. Following Solana, the most significant losers are CoinFlux’s native token and the famous meme coin PEPE.
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