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Solana’s price has become a focal point in the cryptocurrency market due to a significant movement of tokens linked to the bankrupt FTX Derivatives Exchange. According to Arkham Intelligence, wallets connected to both the FTX and Alameda Research estates received a huge deposit of 3.033 million SOL from an unidentified address, creating considerable headwinds for the token. This unexpected influx of Solana into these wallets has raised concerns about the potential impact on the price of the cryptocurrency.
FTX Estate and the Potential for Solana Price Selloff
As per the data from Arkham Explorer on X, the total value of the received Solana amounts to a staggering $430.47 million. The transfer occurred at block height 324383268, and the associated fee was incredibly minimal, standing at just 0.0001 SOL. The crypto data platform Whale Alert also reported that the transfer took place in two separate tranches. The first transfer consisted of 1,928,763 SOL, worth approximately $305.67 million, while the second transfer included 1,102,953 SOL, valued at $174.8 million.
Although Whale Alert did not directly reveal the identity of the wallet linked to the transfer (with the wallet ID “2jN7TS…5wThPF”), this transaction has been verified by Arkham Intelligence. The identity of the receiving wallet is still unknown, but the transfer has led to increased speculation in the market about its potential impact on Solana’s price. The big question is whether this transfer is setting the stage for a significant selloff of Solana, which could pressure the price even further.
The Pressure Mounting on Solana’s Price
As previously reported by CoinGape, the FTX Estate had been preparing to liquidate up to $27 million in SOL, placing additional pressure on Solana’s price. This liquidation is part of the estate’s obligation to repay creditors, and while the estate’s actions were expected, they represent a considerable obstacle for the price of Solana. The market has already seen a significant drop, and this ongoing liquidation process could weigh heavily on the coin’s value.
At the time of writing, Solana’s price was sitting at $140.88, reflecting a notable 19.46% decrease in just the past 24 hours. The coin has been trading within a relatively tight range, fluctuating between a high of $178.63 and a low of $139.43, as part of the broader crypto market downturn. Solana’s price has been facing a more volatile trend recently, and it has now fallen more than 52% from its all-time high (ATH) of $294.33. Despite these challenges, some analysts, such as those from VanEck, have predicted that Solana could reach $520 this year. This optimism is based on Solana’s expanding presence within decentralized finance (DeFi) and the growing use of Solana-based memecoins.
Key Triggers That Could Influence SOL Price
Despite the negative pressure from the FTX-related liquidity event, there are several factors that could potentially trigger a price recovery for Solana. One of the most significant catalysts is the growing push for a Solana-based ETF (exchange-traded fund). If the United States Securities and Exchange Commission (SEC) approves the Solana ETF, it could pave the way for increased institutional adoption of Solana, which might, in turn, provide the necessary momentum to send the price of SOL back towards its ATH. This development could serve as an essential turning point for the coin, boosting investor confidence and potentially driving up Solana’s price once again.
As it stands, the future of Solana is largely tied to both external market conditions and internal developments, such as the approval of the ETF and the ongoing liquidation from the FTX estate. Investors are keeping a close watch on these developments to gauge the potential for Solana to recover or face further declines.
