Solana News Now: SOL Tanks Over 20% As Alameda Contagion Spreads
One altcoin that has been affected a lot following the FTX and Alameda collapse is Solana (SOL). Along with the FTX tokens, Solana’s native crypto SOL has come under intense selling pressure. The SOL price is trading 20% down in the last 24 hours at a price of $21.06 as of press time.
Ever since the Alameda crisis surfaced last week, the SOL price has tanked by a staggering 50% in the last five days. Over the last 24 hours, there have been nearly $0 million in SOL long liquidations as per data on Coinalyze.
But why is the Alameda contagion spreading to Solana (SOL)? As per reports, Sam Bankman-Fried has acquired $1.2 billion worth of SOL tokens via Alameda. Industry reports suggest that Alameda has been selling its SOL holdings and buying FTT to contain the fall of the FTX token price.
Furthermore, with the recent development of FTX’s buyout by Binance, CZ controls 10% of the tokens. Thus, investors might think that they would be better off supporting the BNB chain instead of Solana.
Sam Bankman-Fried was one of the major supporters of Solana. But with his companies under deep water, it remains doubtful on how long would this support continue to extend.
Solana Whale Liquidation
As per on-chain data, there has been a major liquidation by a Solana whale which is driving the SOL price lower. Citing data from Solend.fi, Chinese crypto journalist Colin Wu explains:
Solana Whale (3oSE9CtGMQeAdtkm2U3ENhEpkFMfvrckJMA8QwVsuRbE) is in liquidation and currently has 2,450,418.5 SOL (worth over $51 million) in collateral and 44,871,609.6 USDC in debt. However, Solana is currently facing congestion due to the update of the oracle.
It is not certain how far this contagion can spread and how much more SOL will be sold in the open market. Earlier this year, investors experienced a similar liquidation situation with LUNA. If panic across retail and institutional investors kick-in, there could be a further downfall in Solana as well as the broader crypto space. Currently,SOL is trading at 90% discount year-to-date.
Play 10,000+ Casino Games at BC Game with Ease
- Instant Deposits And Withdrawals
- Crypto Casino And Sports Betting
- Exclusive Bonuses And Rewards
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
- L2 Unity Launches 50M Token Airdrop Across Arbitrum and Optimism, Eligibility Open for 100K Wallets
- Tom Lee’s Bitmine Adds 5,000 ETH Despite $7.5B Unrealized Loss as BMNR Stock Rebounds
- CLARITY Act Should Ban Stablecoin Yields to Advance in Senate, French Hill Says
- U.S. Set to Deploy Warships to Keep the Strait of Hormuz Open, Bitcoin Climbs
- Crypto Market Retraces as Iran Vows to Escalate Conflict After U.S. Strikes on Kharg Island
- Official Trump Price Prediction As TRUMP Token Soars 50% Ahead Mar-a-Lago Invite Buzz for Top Holders
- Solana vs XRP Price Forecast: Can SOL Reclaim Its All-Time High Before XRP Hits $2?
- Top Analyst Predicts Cardano Price Could Surge 100% As Bitcoin Breaks $72k
- What’s Keeping Shiba Inu Below $0.0000065- Analyst Predicts 30% Rise Ahead
- Will BTC Price Rally to $100K by 2026? Kalshi and Polymarket Odds Climb to 51%
- Why Pi Network Price Surged 30% Today?
