In the world of cryptocurrency, the price trajectory of Solana (SOL) has been a topic of discussion among investors and analysts. With its innovative blockchain technology and increasing adoption, Solana has the potential to achieve new price milestones.
One particular topic of interest is whether Solana can reach a price point of $70 before FTX, a major cryptocurrency exchange, unloads its holdings of the asset. This article delves into various factors that might influence Solana’s price and the implications of FTX’s potential actions on the market.
Solana’s Price Momentum
Solana has seen a remarkable price rally in 2023, with its price jumping by over 400% from the start of the year, nearing $451. It displayed an impressive performance by rising over 80% in a matter of weeks during a certain period2.
Various price predictions suggest a bullish sentiment toward Solana, with price predictions for 2023 ranging from around $27 to over $38, and some even speculating that it might reach $50 soon3. However, a prediction from CoinCodex suggests a slightly more conservative estimate of Solana reaching $35.28 by November 3, 20234.
FTX’s Holdings and Potential
FTX holds a substantial amount of Solana, with 58 million SOL tokens, out of which approximately 42.2 million are currently locked and unavailable for immediate trading5. There have been instances where FTX unstaked a significant amount of Solana tokens, which introduced a sell pressure in the market, indicating that such actions by FTX could potentially affect Solana’s price6.
Industry observers are concerned about the possible sell-off from FTX’s substantial holdings, which could impact not just Solana’s price but also the broader crypto market7. Interestingly, it’s mentioned that the majority of FTX’s Solana tokens will only start to unlock in the coming years, with most remaining frozen until 2027 or 20288.
The potential for Solana to reach $70 before FTX unloads its holdings presents a speculative scenario. The bullish momentum and positive market sentiment towards Solana suggest a promising outlook. However, the actions of FTX, particularly if they decide to unload a significant portion of their holdings, could introduce uncertainties in Solana’s price trajectory.
Given the locking period of a majority of FTX’s holdings until 2027 or 2028, the immediate impact may be limited, but any significant unloading of unlocked tokens could still affect the market. As always, investing in cryptocurrencies involves inherent risks, and potential investors should conduct thorough research to make well-informed decisions.