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FTX liquidated $100 million SOL in 10 days, but there is more to go

FTX liquidated $100 million SOL in 10 days, but there is more to go

Sam Bankman-Fried, the founder of FTX and Alameda Research, was found guilty of seven counts of fraud and conspiracy after 15 days of testimony. Meanwhile, crypto wallet addresses owned by these companies have dumped millions of dollars in cryptocurrencies in the past 10 days.

Particularly affecting Solana (SOL), FTX and Alameda’s known addresses have deposited a total of 2.69 million SOL ($99.2 million) to cryptocurrency exchanges since October 24.

The most recent three deposits registered by Spot On Chain summed up to 800,000 SOL ($32.7 million) sent to Binance and Kraken on November 2. FTX made these deposits at an average price of $40.9 per token.

FTX cold storage deposits 800,000 SOL to Binance and Kraken
FTX cold storage deposits 800,000 SOL to Binance and Kraken. Source: SpotOnChain

Notably, both companies still hold 4.26 million SOL ($164 million), of which 3.96 million tokens ($152 million) are under staking. Despite being momentarily illiquid on Solana’s protocol, the staked amount could be redeemed at any time. This would create another sell-off threat that might impact SOL’s price in the short term.

It is estimated that FTX and Alameda Research have liquidated more than $200 million in crypto assets in the past 10 days.

SOL price analysis

Meanwhile, Solana’s spot and derivatives volume have surged in the last few days during a bull rally for the layer-1 web3 blockchain. Interestingly, SOL has consistently been among the best performers in the crypto market in different time frames.

At the time of publication, SOL was trading at $38.89 with massive daily losses superior to 12%. The market expects more liquidations from FTX and Alameda, with Sam being pled guilty.

SOL 1-month price chart
SOL 1-month price chart. Source: Finbold

Nevertheless, Solana is up 19% and 66% in the last seven and 30 days, respectively. Showing strength despite the sell-offs with continuous development and positive news for its ecosystem, which generates demand for the native token SOL.

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