One altcoin that has been affected rather a lot following the FTX and Alameda collapse is Solana (SOL). Together with the FTX tokens, Solana’s native crypto SOL has come underneath intense promoting stress. 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 practically $0 million in SOL lengthy liquidations as per data on Coinalyze.
However why is the Alameda contagion spreading to Solana (SOL)? As per studies, Sam Bankman-Fried has acquired $1.2 billion price of SOL tokens by way of Alameda. Trade studies counsel 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 improvement of FTX’s buyout by Binance, CZ controls 10% of the tokens. Thus, buyers may suppose that they’d be higher off supporting the BNB chain as a substitute of Solana.
Sam Bankman-Fried was one of many main supporters of Solana. However along with his corporations underneath deep water, it stays uncertain on how lengthy would this help proceed to increase.
Solana Whale Liquidation
As per on-chain information, there was a serious 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 the moment has 2,450,418.5 SOL (price over $51 million) in collateral and 44,871,609.6 USDC in debt. Nevertheless, Solana is at the moment going through congestion as a result of replace of the oracle.
It isn’t sure how far this contagion can unfold and the way far more SOL can be bought within the open market. Earlier this 12 months, buyers skilled an identical liquidation scenario with LUNA. If panic throughout retail and institutional buyers kick-in, there may very well be an additional downfall in Solana in addition to the broader crypto house. At present,SOL is buying and selling at 90% low cost year-to-date.
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