FTX continues its asset liquidation process and has now unstaked more than 178,000 Solana (SOL) tokens, valued at over $128 million. This move follows the approval of FTX’s reorganization plan by a U.S. court, as the exchange works to settle its debts to creditors.
Regular Solana Token Unstaking Raises Concerns
FTX has been regularly unstaking large amounts of SOL, raising concerns about the potential impact on the market. The most recent unstaking of 178,631 SOL took place on October 15 as part of FTX’s ongoing efforts to liquidate assets and return funds to its customers. These regular sell-offs could put downward pressure on Solana’s price.
In September 2024, FTX and its sister company Alameda Research withdrew more than 530,000 SOL, worth approximately $71 million. These tokens were sent to various wallets, with an average of 176,700 SOL being sold each month. Despite this, FTX and Alameda still hold around 7.06 million SOL, valued at about $945.7 million.
Potential Market Impact of SOL Token Sales
The sale of such a large quantity of SOL could lead to a decline in the token’s value on the market. It is expected that the unstaked tokens could be sent to exchanges like Coinbase and Binance for sale. This increased supply could further pressure SOL’s price. As FTX continues to implement its reorganization plan, more of these sell-offs could occur, potentially impacting Solana’s value even more.
While the market has recently seen positive momentum, with Solana’s price rising by over 8% in the past week, this uptrend may be temporary. Currently, SOL is trading at around $151, representing a 3% drop due to fears following FTX’s latest move.
Strong Fundamentals Could Support Solana Despite Sell-Off
Despite these liquidations, Solana’s strong fundamentals could help sustain its value. The Total Value Locked (TVL) in Solana’s DeFi applications surpassed $6.1 billion in October, marking its highest level since January 2022. The growing confidence of users and an influx of new capital could help stabilize SOL’s price despite the selling pressure.
Additionally, the number of active addresses on the Solana network is increasing, with over 4 million new addresses created daily. This rise in user activity and demand for Solana’s services could offset the negative price impact from FTX’s asset liquidations.
Potential SOL Price Outlook
From a technical standpoint, Solana faces strong resistance at the $159 level. If it manages to break through this resistance, the price could rise to $186, a level last seen in July 2024. However, if FTX continues to liquidate unstaked tokens without sufficient market demand, SOL’s price could drop by 15%, with support at $131. If this support fails, Solana’s price could fall further to $109.
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