In a market where most cryptocurrencies are experiencing mild consolidation, Ethereum Layer-1 rival Solana (SOL) has faced a notable price correction. Today, SOL price is down 7% to trade at $60.32, marking a shift from the recent bullish rally. The correction coincides with a significant transfer from the FTX cold wallet and sheds light on the dynamics of Solana’s current market conditions.
Solana installed on FTX cold wallet released
Solana’s recent price drop is closely linked to a significant event involving the FTX cold wallet. Lookonchain reported that an address associated with the FTX cold wallet, identified as 4Axqyo…HswTAh, received back a significant amount of SOL 1.5 million, equivalent to approximately $90 million. The move comes amid FTX’s ongoing efforts to liquidate its assets following its recent bankruptcy filing.
1/ FTX-related address "4Axqyo…HswTAh" unstaked 1.5M $SOL($90M) 2 hours ago and transferred it to "3vxheE…5mgkom".
And we noticed that "3vxheE…5mgkom" deposited 4.13M $SOL($248.67M) to #Coinbase 11 hours ago. pic.twitter.com/pQRNDZCvgy
— Lookonchain (@lookonchain) December 5, 2023
The entire amount that was not staked quickly went to 3vxheE5…5mgkom. Speculation has arisen that this receiving address may be linked to Coinbase’s internal address and that FTX is making a strategic move to repay creditors. Despite FTX’s liquidation actions, Solana investors remain bullish, showing resilience in the face of market challenges.
What is the latest situation in SOL price?
Despite the recent pullback, SOL is currently trading at $60.10 and is down 6.87% over the last 24 hours. However, SOL has shown resilience with a 12.23% increase over the week and an impressive 46.84% increase over the last 30 days. Market watchers are closely monitoring key levels such as the critical support at $62.5 and foreseeing potential bullish scenarios if SOL breaks above $63.4.
Solana’s importance extends beyond price fluctuations as it continues to make waves in the decentralized finance (DeFi) industry. Latest market dynamics show that Total Value Locked (TVL) has reached an impressive figure of $655 million. This is not only a numerical achievement, but also demonstrates Solana’s emergence as a formidable player in the decentralized finance space, demonstrating strong and sustainable growth.
What will happen now?
The cryptocurrency world remains dynamic as Solana overcomes market challenges and FTX makes strategic moves. Investors and analysts are closely monitoring SOL’s price movements and its growing influence in the DeFi sector. Expect more developments in the coming days. Especially since FTX received permission to sell, the wallet of the bankrupt crypto exchange has been under focus. As we reported as Kriptokoin.com, the large presence of Solana in wallets was frightening users.
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