FTX Unstakes $31M Solana Amid Crypto Market Rally, Is a Sell-Off Coming?

In a fresh move, FTX has once again unstaked millions worth of SOL, raising fresh questions about possible sell pressure during an already heated bull run. While some traders see it as routine, others warn it could spark short-term volatility in this bull market.

$31 Million in SOL Unstaked in FTX’s Latest Move

Lookonchain reported that FTX transferred about 189,851 SOL, worth around $31.32 million. This significant move happens as the crypto market is seeing a positive shift, and with institutional investors showing strong interest in integrating Solana to their ecosystem.

Although this isn’t the first time FTX has unstaked large amounts of SOL. However, the timing, during an ongoing rally, has caught the market’s attention. A market commentator noted, “Sending it into the market can bring more uncertainty for SOL,” highlighting that even amid optimism, investors remain cautious.

Some market observers view the recent SOL unstaking by FTX as a routine step, noting that the exchange has been steadily releasing similar amounts for months. With institutional demand for Solana reportedly staying strong, many expect that any additional supply will be absorbed without significant disruption.

On a more positive note, some analysts view this move as a beneficial development. They suggest that FTX might use the unlocked SOL for other vital investments or to make opportunistic buys in the market.

At the same time, others highlight that Solana’s network has become more resilient. It now handles over $30 billion in transactions each day, and past large-scale liquidations have not stopped its long-term growth. In this context, the current $31 million being unstaked seems small compared to the network’s overall size.

FTX Repayments and Potential Impact on The Solana Price

The unstaking activity also fits into the larger context of FTX’s bankruptcy process. The exchange is distributing about $5 billion in assets. Most of the claims, around 82%, come from users in China. However, these users may experience difficulties receiving their payments because China has banned cryptocurrency trading.

Previous events show how this repayment strategy can influence SOL’s price. Earlier this year, FTX’s preparations for a multi-billion-dollar payout coincided with the release of $236 million worth of SOL. This caused a temporary drop in price. The recent release of $31 million is much smaller, but it still raises concerns about possible sell-offs in the near future.

Much depends on what happens next. If institutions and large holders choose to keep their newly unstaked SOL instead of selling it right away, the market impact may be small. However, if a lot of Solana is quickly sold on exchanges, the price of Solana could become more unstable in this bull market.