A significant Solana whale has unstaked 200,000 SOL, valued at $29.8 million, and moved the tokens to Binance, sparking concerns about potential selling pressure on the asset. 

This whale has previously influenced SOL prices during the July correction. The wallet was inactive but showed a pattern of withdrawing large amounts of SOL before moving them to Binance, a trend that has recurred in recent months.

Whale activity raises market concerns

The whale’s recent activity involved removing 200,000 SOL from staking and transferring it to Binance over three days. The wallet, created in August 2023, has seen activity primarily during significant market movements, such as in June, July, and the end of September.

This whale is one of 217 wallets that hold substantial SOL stakes, with around 13% of the total staked SOL controlled by these large players. In the past, the same whale unstaked $178 million worth of SOL in July, contributing to a price drop from $170 to $129. The whale still holds a stake of 299,994.07 SOL, delegated to Block Logic +MEV Triton, one of the critical validators in the Solana ecosystem.

Block logic validator loses support from a mid-range whale

Block Logic, one of the leading Solana validators, lost a significant portion of its stake following the whale’s withdrawal. Located in Amsterdam, this validator staked 1,449,366 SOL, valued at $217 million, offering a 7.1% annual yield. However, concerns about the potential impact on the validator’s rewards and security have emerged with the recent withdrawal.

Block Logic still has support from another whale, holding more than 1.2 million SOL and several smaller stakers. Despite the withdrawal, Solana staking continues to show net inflows, with more users staking SOL each epoch, surpassing the outflows.

Impact on Solana staking and market sentiment

Solana staking plays a crucial role in maintaining market stability and price support. Staking not only mitigates inflation but also offers passive income to stakers. Currently, nearly 70% of SOL is staked, meaning that free tokens in circulation can significantly influence market dynamics.

The recent whale activity and unstaking events have raised concerns among market participants, especially given the history of significant unstaking events contributing to price declines. However, with most SOL remaining staked and steady inflows of new stakers, the market sentiment around SOL remains cautiously optimistic.

SOL is trading at $149.70, with trading volumes exceeding $2 billion in the last 24 hours. While open interest remains stable, the potential for increased selling pressure looms, especially if other whales follow a similar unstaking pattern.

The post Solana Whale Unstakes SOL, Raising Concerns About Selling Pressure first appeared on Coinfea.