The crypto world is on edge as wallets linked to bankrupt exchange FTX and its trading firm Alameda Research just unstaked over 3 million Solana (SOL). This is the biggest SOL unlock since they started selling off assets in November 2023. With SOL already dropping 20% in the last 24 hours, panic is spreading.
Will this massive unlock trigger an even bigger price crash, or can the market hold strong?
According to Lookonchain FTX and Alameda just made their biggest Solana (SOL) unlock since late 2023. On March 4, FTX & Alameda unstake 3.03 million SOL worth a jaw-dropping $431 million in a single move.
Shortly after the unlock, around 25,000 SOL ($3.3 million) was sent straight to Binance. This continues a trend that started in November 2023 when FTX and Alameda unstaked 2.1 million SOL worth $141 million.
With millions of SOLs constantly flowing to exchanges, fears of a bigger sell-off are growing. Some experts believe this could trigger another price crash, or is the market ready to absorb the shock?
While the unstaking of such a massive amount raises concerns, FTX cannot immediately sell all the tokens at once due to strict bankruptcy court rules.
A September 2023 ruling limits their liquidation to $50 million per week initially, increasing to $100 million in later weeks. If they seek to sell more than $200 million per week, they must obtain court approval.
Despite these restrictions, data from Spot On Chain shows that since November 2023, FTX and Alameda have unstaked 7.83 million SOL, worth nearly $986 million, with most of these tokens sent to Binance and Coinbase for liquidation.
Solana (SOL) is among the biggest losers today, plunging over 20% and wiping out nearly $10 billion from its market cap. Currently, it remains more than 60% below its all-time high of $294. Looking ahead, SOL now faces a crucial test at the $145 resistance level, which previously acted as support.
If SOL manages to surge above $145, it may gain momentum and climb toward $165, signaling a potential recovery.
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