Issues have resurfaced within the crypto market in regards to the sustainability of Solana’s current rally, fueled by hypothesis about potential liquidation dangers related to the troubled FTX alternate.
Within the final 24 hours, Solana (SOL) hit a brand new one-year excessive of $209.33, up greater than 10% from $188. Over the previous seven days, regardless of Bitcoin dragging the crypto market down, SOL has remained resilient, rising greater than 40%.
Notably, Solana was one of many cryptocurrencies that ignited the bull run of this cycle in October 2023, doubling in worth in lower than 30 days. The asset maintained its uptrend till January and entered a consolidation part between $85 and $120 till this month when it made one other breakout. Considerably, SOL soared greater than 64% from its March 1 value of $125 to $209 immediately.
Nonetheless, market members are as soon as once more involved that Solano’s new rally will fade, particularly seeing FTX as a menace to Solano’s uptrend. In a current publish on X, Bitcoin fanatic Pledditor claimed that FTX holds a staggering 58 million SOL tokens “on the market”.
These tokens, which FTX is alleged to carry, are price greater than $12 billion on the present prevailing market value of the asset. Nonetheless, it’s price noting that FTX doesn’t maintain this quantity of Solana tokens.
Information from blockchain explorer Solana reveals that FTX’s SOL holdings are nearly fully depleted. The bankrupt agency has liquidated a big quantity of property because the finish of 2023, when SOL began an uptrend.
Particularly, the Solana tackle labeled “FTX Chilly Storage 1” solely has 1,376.99 SOL price $286,056. In the meantime, FTX Solana 2 and three are empty with barely $1.00 price of SOL tokens.
In different phrases, contemplating SOL’s large every day buying and selling quantity, the $286K Solana FTX hardly poses a big problem to the asset’s uptrend. For instance, within the final 24 hours, SOL has seen greater than $10.65 billion. Furthermore, FTX, which liquidated 1 million models of SOL final November, by no means stopped the asset from rising even additional.
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