FTX Estate Stakes Solana—Sell-Off Fears Averted?• October 14, 2023 2:13 pm • Comments
Stewards of the FTX estate recently staked 5.5 million Solana (SOL) coins valued at $122 million.
This has assuaged fears of a massive, looming sell-off of SOL that could have severely impacted the market price of the struggling cryptocurrency, but is it too early for Solana investors to celebrate?
To date, the FTX estate has recovered roughly $7 billion in both liquid and illiquid assets consisting of stocks, real estate holdings, digital assets, and cash belonging to both creditors and clients of FTX.
Eventually, creditors and victims of the now-defunct exchange will have to be reimbursed and made whole.
It stands to reason that at some point the assets will have to be liquidated in order to pay back creditors and customers of the former crypto exchange—this includes the defunct exchange’s crypto holdings.
However, today is not that day as evidenced by this chart showing increased levels of staked SOL.
Despite this spot of good news for SOL holders, the Solana network has crashed several times now and many in the crypto community fear for the future of the project.
However, Solana coins and the Solana network continue to be a favorite among institutional investors, who see promise in the fledgling network.
Solana has been trading in a range for most of this year, with the lower end of the range coming in at around $15.83 and the high end of the range at $27.15. This sideways price movement can be seen as the consolidation phase of a longer downtrend that has been in effect for years now.
A short-term analysis of Solana’s price action shows a bull flag forming that could suggest a return to the upside of the current range, though this is not guaranteed.
Solana is currently trading at $22.06 at the time of this writing, and it remains to be seen if the altcoin can reclaim its previous high of $260.50, reached in November 2021, during the next bull market.
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