- Major Solana whale has liquidated millions of SOL tokens.
- Binance-FTX fiasco is considered to be the major driver in the price drop.
- Solana has lost the spot as top 10 cryptos by market cap.
According to the data provided by lending platform Solend, a major Solana whale is amid liquidation with over $44 million USDC in debt, with 2,450,418.5 SOL tokens set up as collateral. The development came amid the FTX and Alameda fiasco, with SOL taking a massive hit.
At press time, the price of SOL was down more than 25% in the last 24 hours, standing at $20.62 per token. Since last week’s revelation of the Alameda crisis, the price of SOL has dropped by a precipitous 50% in the past five days. According to Coinalyze statistics, there have been almost $22 million in SOL long liquidations over just the past 24 hours.
Per analysts, one of the reasons why SOL was tanking is Sam Bankman-Fried’s $1.2 billion stake in the token, acquired via Alameda. In an effort to stem the falling price of FTX tokens, Alameda has reportedly been selling its SOL holdings and buying FTT.
In addition, with the recent event of Binance’s acquisition of FTX, CZ now has ownership of 10% of the tokens. With this, Industry observers believe that investors may conclude BNB chain as more deserving of their investment than Solana. Now, the major liquidation from Solana whale “3oSE9CtGMQeAdtkm2U3ENhEpkFMfvrckJMA8QwVsuRbE” is driving prices lower.
According to statistics compiled by Coinglass, the total value of assets liquidated within the last 12 hours amounted to $294.78 million as the market plunged. There was a total of $339.29M in liquidations in the past 24 hours as of this writing.
Furthermore, the cryptocurrency market took a massive hit when a whale transferred $44 million worth of FTT to FTX, with many suspecting it was Binance. The exchange’s CEO, Changpeng Zhao, denied the claim. In the hours after the transaction, the price of FTT plummeted by 30%. Meanwhile, data from Santiment has revealed a sharp uptick in SOL volume while its price dropped. Per analysts, this was a negative signal, which propelled the downtrend. At the time of writing, Solana has dropped out of the top ten list of cryptocurrencies in terms of market capitalization.
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