FTX Readies to Offload 177K Solana Coins After Staking Unlock – SOL Price at Risk?

• FTX’s affiliated wallet has redeemed 177,693 Solana (SOL) tokens worth $23.4 million, raising concerns about a potential sell-off that could affect SOL’s price.
• The SOL price is currently stabilizing around $130, analysts believe a reversal is possible, fueled by network upgrades, meme coin resurgence.

Defunct crypto exchange FTX, founded by Sam Bankman-Fried, is reportedly gearing up to offload a good chunk of its Solana (SOL) reserve. This has concerned the Solana community regarding a potential sell-off and SOL price drop. 

Per the latest development, a crypto wallet affiliated with FTX and Alameda Research, identified as H4y…gFZ, has redeemed a total of 177,693 SOL from the Solana Proof-of-Stake (PoS) network. The transaction amounts to approximately $23.75 million and has reignited discussions within the crypto community. Netizens are debating whether FTX will soon transfer these coins to centralized exchanges (CEXs), potentially impacting the SOL price.

Furthermore, this development is noteworthy given FTX’s bankruptcy in November 2022, which caused significant volatility and a steep drop in the Solana price. 

Despite the recent redemption, the movement of SOL tokens from the FTX/Alameda wallet is relatively small compared to the total SOL it holds. According to Solscan data, the H4y…gFZ wallet still holds approximately 7.057 million SOL, valued at around $943 million, which remains staked in the network. 

Moreover, previous reports suggest that FTX has sold Solana coins previously via over-the-counter (OTC) transactions, per the CNF report. This revelation has alleviated some concerns over a sudden sell-off in open exchanges. Also, it’s important to note that the timing of the recent transaction coincides with the impending court hearing of former Alameda Research CEO Caroline Ellison, scheduled for September 24.

Ellison, who has cooperated with prosecutors and provided testimony regarding FTX’s collapse, may receive a reduced sentence. The outcome of this hearing could offer insights into FTX’s future plans. This includes whether further liquidations of its SOL holdings will be necessary.

Solana (SOL) Price Action Moving Ahead

As of press time, the Solana price is trading 2.78% up at $134.76 with a market cap of $62.8 billion. Following a remarkable rally in 2023, Solana has posted more modest returns in 2024. Since the beginning of 2024, the SOL price has risen by 32.75% while delivering more than 640% returns over the past year.

After reaching a high of $209 in March, when Bitcoin hit a new all-time high, SOL has since retraced and is now forming a base around the $130 level. Hence, analysts believe the SOL price could be gearing for a reversal backed by other market catalysts with key improvements in its on-chain metrics, reported CNF. 

These catalysts include potential network upgrades, renewed interest in meme coins, institutional investments, and the possibility of a SOL ETF launch. Some experts predict that if these factors align, Solana could reach as high as $1000 by 2025. 

However, the Solana ETF is facing uncertainty due to the CBOE removing VanEck and 21Shares 19-b4 filings from its website, reported CNF. Nonetheless, VanEck’s Head of Digital Assets Research, Matthew Sigel, has expressed optimism toward an imminent approval.