Solana’s Price Plummets Below $160 Amid FTX Unlocking Concerns

Solana (SOL) has experienced a significant price drop, falling by over 7% to levels below $160. This decline has been attributed to investor concerns surrounding the upcoming FTX unlocking of 11.2 million SOL tokens, valued at approximately $1.77 billion.

Market Performance

On February 24, Solana’s price decreased to $158.46, its lowest point this year. The token has struggled to recover, remaining at around $159. According to data, Solana has declined by 6.9% in the past 24 hours, with a weekly decrease of nearly 13% and a monthly decline of over 35%.

Solana’s market capitalization currently stands at $78 billion, with a fully diluted valuation of $95 billion. Despite a brief rebound earlier in the week, surpassing the $180 mark, the token’s price has continued to decline.

DEX Volume Suffers

Solana’s decentralized exchange (DEX) volume has also been impacted, decreasing by 36.7% in the past week. The blockchain’s weekly DEX volume currently stands at $16.6 billion, with a daily DEX volume of $1.5 billion.

Market Concerns

The impending FTX unlocking has raised concerns among investors, with many anticipating a potential impact on Solana’s liquidity and price stability. The increased token supply could lead to downward pressure on the price, potentially triggering a significant drop.

“However, investors could take advantage of the opportunity presented by the price drop to accumulate more Solana. If demand holds up, Solana’s price may see a rebound soon.”

Whale Investor Activity

Recent data indicates that whale investors have been opting for put option transactions, which are executed over-the-counter rather than through regular buy orders on the exchange. This strategy allows buyers to minimize their impact and protect themselves from potential market volatility.

For example, SOL block trades on derivative cryptocurrency exchange Deribit accounted for nearly 25% of all Solana options activity, with put contracts making up approximately 80% of block trades.

Tips for Investors

Considering the current market conditions, investors should:

  • Monitor Solana’s price movements closely, taking note of any potential rebounds.
  • Consider accumulating more Solana tokens during the price drop, if demand holds up.
  • Be cautious of the potential impact of the FTX unlocking on Solana’s liquidity and price stability.

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