FTX Affiliated Wallet Redeems 177,693 SOL
A cryptocurrency wallet linked to FTX/Alameda, identified as H4y…gFZ, has recently withdrawn 177,693 SOL tokens from the Solana Proof-of-Stake (PoS) network. This movement has sparked concern within the market, as FTX was previously one of the largest holders of Solana, contributing to the price crash that followed its bankruptcy in November 2022.
Is FTX Preparing to Dump Solana Tokens on Centralized Exchanges?
According to Solscan data, the FTX/Alameda wallet has transferred approximately $23.75 million worth of Solana tokens today from the PoS network. This has ignited discussions within the crypto community about the possibility of these redeemed SOL tokens being transferred to centralized exchanges (CEXs) in the near future.
However, despite this recent transfer, the amount moved remains relatively small compared to the total SOL holdings of the FTX wallet. The wallet, H4y…gFZ, still holds around 7.057 million SOL tokens, valued at $943 million, currently staked in the PoS network. Previous reports suggest that much of FTX’s Solana holdings may have been sold through over-the-counter (OTC) transactions, reducing the immediate sell-off pressure on public markets.
Solana Price Holds Steady Despite Market Movement
Despite the movement of SOL tokens, Solana’s price remains stable, trading 1.93% higher at $135 with a market cap of $63.57 billion. Year-to-date, SOL has seen a 35% increase, and its yearly performance boasts a remarkable gain of over 650%.
This development comes ahead of the scheduled court hearing for former Alameda CEO Caroline Ellison on September 24. It is anticipated that Ellison’s cooperation and testimony could lead to a reduced sentence.
Will Solana’s Price Rally Continue Through 2024?
Following a strong performance in 2023, Solana has delivered more moderate returns in 2024. The SOL price surged to a high of $209 in March, coinciding with Bitcoin’s new all-time high, but has since corrected and now appears to be stabilizing around $130, suggesting a potential reversal from this base level.
To sustain further gains, Solana will likely need a mix of positive catalysts, such as network upgrades, a resurgence of meme coins, increased institutional investment, and the potential launch of new ETFs. Earlier in 2023, the meme coin frenzy played a key role in driving SOL’s price to $200. With additional momentum across various sectors, the SOL price could potentially rally toward $1,000 by 2025.
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