FTX’s Solana sell-off triggers 7% price drop in crypto asset

Solana’s price fell by around 7% during the last 24 hours after bankrupt FTX transferred 250,000 SOL tokens, worth approximately $14 million, to the Kraken crypto exchange on Nov. 13, according to on-chain data.

Blockchain analytical firm Peckshield corroborated this report, adding that FTX also transferred $3.99 million USDT to Binance and Wintermute during the last 24 hours.

These transactions follow a similar trend observed over the past several weeks. The bankrupt crypto firm has rapidly divested its crypto holdings, moving more than $300 million worth of assets. CryptoSlate reported that Solana accounts for more than half of these transfers, with the exchange moving 4.8 million SOL tokens, equivalent to $187 million, as of Nov. 8.

Nevertheless, the rapid sell-off may ease as the number of SOL tokens held in FTX’s public addresses on the Solana blockchain has dwindled to 3,408 tokens, valued at approximately $185,000, according to on-chain analyst Lookonchain.

Previously, the FTX estate boasted over $1 billion of Solana in its asset portfolio, establishing the cryptocurrency as its most substantial digital asset holding.

Solana takes a beating.

Solana’s current upward price movement has ground to a sudden halt during the last 24 hours, with its value declining by more than 7% to $54.27 as of press time, according to CryptoSlate’s data.

Over the past month, SOL’s value has risen by around 170% and over 500% on the year-to-date metrics amid the growing market optimism about the potential approval of a spot exchange-traded fund.

Solana’s robust price gains have led to a surge in fresh adopters, heightened liquidity, and a burgeoning fascination with its blockchain technology, enjoying adoption from major traditional institutions.

Additionally, decentralized finance activities on the blockchain are returning to previous highs, with the total value of assets locked on the network now exceeding $500 million, its highest level since FTX collapsed last year, according to DeFillama data.