Solana Loses Steam as FTX Estate Moves $30 Million in SOL
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Solana, the high-performance blockchain network, witnessed a 5% price drop since Sunday, November 5, due to significant SOL token transfers by the FTX estate. On-chain data reveals that 750,000 SOL tokens, valued at approximately $30 million, were moved to Binance and Kraken, potentially for liquidation.
The FTX estate manages asset recovery from the now-defunct FTX crypto exchange, which faced bankruptcy amid allegations of fraud against its founder and former CEO, Sam Bankman-Fried. FTX had been a significant early supporter and investor in Solana, holding a substantial amount of SOL tokens. With this latest transfer, the FTX estate has moved a total of $102 million worth of SOL tokens to exchanges, making it the largest asset liquidation.
1/ In the past 24 hours, #FTX transferred a total of 1.1M $SOL ($42.35M) and 7,183 $ETH ($12.9M) to sell.
As of Nov 3, #FTX had transferred ~$221.7M in crypto assets.
How many assets does #FTX have left?👇 pic.twitter.com/piQY8ATW9X
— Lookonchain (@lookonchain) November 3, 2023
This substantial movement may exert downward pressure on SOL’s price, which has already dipped 13.8% from its recent 14-month high of $46.87 on November 1. As of now, SOL is trading at $40.22, marking a 2% decrease in the last 24 hours.
Solana Remains a Key Player in the Space
Solana, known for its speed and scalability, aims to provide decentralized applications (DApps) with high throughput and low latency. Boasting the ability to process over 50,000 transactions per second, thanks to its innovative proof-of-history (PoH) consensus mechanism, Solana has gained significant attention and adoption in the crypto space, particularly within the decentralized finance (DeFi) and non-fungible token (NFT) sectors.
However, Solana is not without its challenges and competition. In February, the platform experienced a 19-hour network outage, though it remains its only downtime this year, a remarkable improvement considering past network issues. Additionally, it faces competition from other blockchain platforms like Ethereum, Polkadot, and Cardano, which are also enhancing their scalability and functionality.
As Solana navigates these challenges and market dynamics, its future performance remains of keen interest to both investors and the broader cryptocurrency community.
