Double dip expected as flood of unlocked Solana to hit the market News โธ Binance โธ FTX โธ Solana โธ Bankruptcy
Double dip expected as flood of unlocked Solana to hit the market
Solana has lost 51% of its value since the start of this week, fears are wider pressures will force holders to exit their positions.
2 min read
Updated: Nov. 9, 2022 at 12:12 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Technical Analyst @DU09BTC warned that 18 million Solana tokens are due to hit the market following the end of their staking lock-in period at the current epoch. He fears that holders will exit positions causing a “second wave of selling.”
18 mil #SOL about to hit the market within 24h. ๐
Those with a lot of coins locked in staking are about to join the liquid supply.
This will represent a second wave of selling.
The lesson from Terra was to never lock your coins. You may regret it. pic.twitter.com/WBZ7tAUZBH
— Duo Nine | discord.gg/ycc (@DU09BTC) November 9, 2022
The 18 million tokens represent approximately 5% of the SOL circulating supply.
FTX has ties to Solana
On rumors of FTX’s insolvency, the past 24 hours have rocked cryptocurrency markets. Early evening Tuesday saw markets rally on news of Binance stepping in to bail out its struggling rival.
In response, market leader Bitcoin jumped to $20,700, but a sharp sell-off occurred moments later, which ended as BTC bottomed at $17,190 – a level not seen since November 2020.
Binance CEO Changpeng ‘CZ’ Zhaoย later reiterated that the FTX deal is non-committal, saying the exchange is able to withdraw from proceedings should due diligence turn up unacceptable risk.
There is a lot to cover and will take some time. This is a highly dynamic situation, and we are assessing the situation in real time. Binance has the discretion to pull out from the deal at any time. We expect FTT to be highly volatile in the coming days as things develop.
— CZ ๐ถ Binance (@cz_binance) November 8, 2022
The bull trap likely boiled down to the market realizing that the FTX black hole may be too much for Binance to take on, and the contagion risk is far from contained.
Since the start of this week, Solana has lost 51% of its value, with some analysts expecting more losses to come.
Commenting on recent events, the founder of Crypto Banter Ran Neuner referenced the ties between Solana and FTX, saying the former has now “lost all of the support and investment” from the latter.
He also speculated that, should Binance follow through with the FTX deal, Solana would play second fiddle to rival layer 1 chain BNB.
No doubt, given the current situation, SOL holders will be mulling over their current investment strategy.
More network outages?
The Solana chain is heavily associated with network outages due to the frequency of their occurrence. Since the start of the year, 13 outages have been logged, with Jan 6 recording the longest incident time of 16 hours and 24 minutes.
As the FTX situation was unfolding on Nov. 8, DeFi protocol Solend warned that transactions were failing due to network issues cropping up.
Solana is currently experiencing network issues, causing transactions to fail. Some are still going through, so try again if your transaction fails.
— ๐๐ซ Solend (we're hiring!) (@solendprotocol) November 8, 2022
Despite the heads-up from Solend, the Solana uptime tracker has not recorded any mainnet network outages since October 1.
Mentioned in this article
Author 
Samuel Wan
Samuel Wan, a finance professional turned full-time crypto content creator, values individual autonomy and personal freedom in his pursuits.
Latest Solana Stories
Latest Alpha Market Report
In this article
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
FTX Token
$1.51915
FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading.
Bitcoin
$66,665.62
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.
