One altcoin that has been affected lots following the FTX and Alameda collapse is Solana (SOL). Together with the FTX tokens, Solana’s native crypto SOL has come below intense promoting strain. The SOL worth is buying and selling 20% down within the final 24 hours at a worth of $21.06 as of press time.
Ever for the reason that Alameda disaster surfaced final week, the SOL worth has tanked by a staggering 50% within the final 5 days. During the last 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 stories, Sam Bankman-Fried has acquired $1.2 billion price of SOL tokens by way of Alameda. Trade stories recommend that Alameda has been promoting its SOL holdings and shopping for FTT to comprise the autumn of the FTX token worth.
Moreover, with the current improvement of FTX’s buyout by Binance, CZ controls 10% of the tokens. Thus, traders would possibly 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 firms below deep water, it stays uncertain on how lengthy would this assist proceed to increase.
Solana Whale Liquidation
As per on-chain knowledge, there was a significant liquidation by a Solana whale which is driving the SOL worth decrease. Citing knowledge from Solend.fi, Chinese language crypto journalist Colin Wu explains:
Solana Whale (3oSE9CtGMQeAdtkm2U3ENhEpkFMfvrckJMA8QwVsuRbE) is in liquidation and presently has 2,450,418.5 SOL (price over $51 million) in collateral and 44,871,609.6 USDC in debt. Nevertheless, Solana is presently dealing with 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 yr, traders skilled an analogous liquidation state of affairs with LUNA. If panic throughout retail and institutional traders kick-in, there may very well be an additional downfall in Solana in addition to the broader crypto house. Presently,SOL is buying and selling at 90% low cost year-to-date.
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