One altcoin that has been affected quite a bit following the FTX and Alameda collapse is Solana (SOL). Together with the FTX tokens, Solana’s native crypto SOL has come underneath intense promoting strain. The SOL value is buying and selling 20% down within the final 24 hours at a value of $21.06 as of press time.
Ever for the reason that Alameda disaster surfaced final week, the SOL value has tanked by a staggering 50% within the final 5 days. Over the past 24 hours, there have been almost $0 million in SOL lengthy liquidations as per data on Coinalyze.
However why is the Alameda contagion spreading to Solana (SOL)? As per experiences, Sam Bankman-Fried has acquired $1.2 billion price of SOL tokens by way of Alameda. Trade experiences recommend that Alameda has been promoting its SOL holdings and shopping for FTT to include the autumn of the FTX token value.
Moreover, with the latest development of FTX’s buyout by Binance, CZ controls 10% of the tokens. Thus, traders may assume that they might be higher off supporting the BNB chain as an alternative of Solana.
Sam Bankman-Fried was one of many main supporters of Solana. However together with his firms underneath deep water, it stays uncertain on how lengthy would this assist proceed to increase.
Solana Whale Liquidation
As per on-chain information, there was a significant liquidation by a Solana whale which is driving the SOL value decrease. Citing information from Solend.fi, Chinese language crypto journalist Colin Wu explains:
Solana Whale (3oSE9CtGMQeAdtkm2U3ENhEpkFMfvrckJMA8QwVsuRbE) is in liquidation and at present has 2,450,418.5 SOL (price over $51 million) in collateral and 44,871,609.6 USDC in debt. Nonetheless, Solana is at present dealing with congestion because of the replace of the oracle.
It isn’t sure how far this contagion can unfold and the way way more SOL shall be bought within the open market. Earlier this 12 months, traders skilled an analogous liquidation state of affairs with LUNA. If panic throughout retail and institutional traders kick-in, there might be an extra downfall in Solana in addition to the broader crypto house. At the moment,SOL is buying and selling at 90% low cost year-to-date.
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