A significant whale has made a large deposit to the trading platform FalconX, and it’s got the cryptocurrency community talking.
Unstaking and depositing 1.37 million SOL—an impressive asking price of $198 million—went down just five hours ago. And this whale? Well, it’s Solana’s very own. These not-so-little movements of Solana’s top stakeholders are making us and a number of other concerned parties wonder: What’s next for Solana ($SOL)?
This whale’s transaction is especially remarkable because the deposit address, “5KWid,” has been dormant for over a year. After such a protracted dormancy, a large deposit happened quite suddenly, and this has many people wondering if the whale is about to sell a sizable chunk of its SOL. The whale in question still has another stake account, “2WWb1,” that holds 40,376 SOL (approximately $5.73 million). But the deposit into FalconX was so large that it relatively seems to be a sell-side move for the market.
Potential Market Impact and the FTX Unlock Event
This whale’s act adds to the anxiety around Solana’s price performance. Over the past 30 days, SOL’s price has taken a significant dive, plummeting by 39.25%, from $234 to $142. This sharp slump is creating considerable unease among investors, who are now intently watching to see if the decrease continues or if a recovery is just around the corner. And with this most recent whale transaction, there are a lot of concerned folks out there who are now pondering the not-so-pleasant possibility of Solana having yet another slump on the way.
Compounding the strain on the price of Solana is the upcoming unlocking of 11.2 million SOL, worth approximately $1.6 billion, by the FTX bankruptcy estate on March 1, 2025. Releasing such a sizeable chunk of Solana into the market could exacerbate the price declines we have seen recently. This could also set off some sort of death spiral, wherein not only Solana but also the exchange’s other assets and the very blockchain on which it runs could see further hit and further liquidity issues.
Dumps 1.37M $SOL —More Downside Ahead?
A whale unstaked and deposited 1.37M SOL ($198M) to FalconX just 5 hours ago, signaling a potential sell-off. pic.twitter.com/C8a76k0hzS— EyeOnChain 🔶 (@EyeOnChain) February 26, 2025
Traders are on edge, and fears are mounting that SOL’s price slump might worsen, following the combination of a sizable recent deposit by a whale and an approaching unlock event for FTX. If the whale turns around and sells off its recent deposit, and if the FTX estate follows through with unlocking a bunch of SOL it has in reserve, we could really see some price pressure on SOL and some further potential losses for SOL holders.
The Whale’s Position and Market Sentiment
The enormous deposit made by the whale into FalconX, after such a long period of dormancy, underscores the crypto market’s unpredictability. While the whale retained a sizable portion of its stake, many in the crypto community believe that high-net-worth individuals’ actions often dictate market sentiment. So, what does it mean when such a figure deposits a staggering amount of SOL into a major exchange? One possible interpretation is that it’s a signal to the lower-tier traders to brace for impact, with the whale hinting it might be time to part with some of that precious SOL.
Big holders (or “whales”) can make prices move, and everyone knows it. If a whale sells a big pile of a token, it can cause smaller holders to freak out and sell, too. When we picture the Solana ecosystem under conditions like these, with a “notable” decline in value and the potential for further price drops and even more price volatility, what do we see? One thing we see is this: Loosely defined, the Solana ecosystem is a set of interrelated, sprawling, virtual spaces.
Additionally, it is captivating that this whale has not been active for over a year and has now made this large, prominent move. When whales invest either in or out of the crypto market, it is generally taken as a signal for the rest of the market. This huge investor typically has more information and more resources than the average crypto trader. It is compelling because when this huge entity makes a sudden change that signals a potential move in or out of the market, it has many traders speculating on why that might be happening.
The State of Solana and Future Outlook
For the past few months, Solana’s been battered with hard, unfriendly events that have led to a nasty drop in price. This was almost the blockchain we could build on—it was the price-friendly, speed-friendly alternative to Ethereum—but why is this happening now? Is Solana still an investment you can believe in? And, as a bonus question: What does this mean for the Solana ecosystem’s smoking-fast NFTs?
The price action of Solana is uncertain, and that is compounded by what is going on with the FTX bankruptcy estate. When FTX went bankrupt, it owed a lot of people money, and those people have been trying to get that money back. But in order to get the money back, they have to sell the assets that the FTX estate holds. And one of the biggest assets that FTX holds is Solana tokens. FTX has promised (in a court filing) that it will sell those assets in a way that doesn’t totally wreck the market. But I’m not sure at all how they might do that. Anyway, FTX has 11.2 million SOL (or approximately 4% of all Solana in existence) that they need to get rid of.
Yet, it is possible the market has already priced in some of the bad news about Solana, including the FTX unlock. If that’s the case, SOL might just stabilize or even rebound, especially with renewed interest from investors or developments within the Solana ecosystem.
Conclusion: A Critical Juncture for Solana
The cryptocurrency market is at a critical juncture, and facing several challenges that could influence its price. A large deposit by a whale into FalconX, along with the FTX unlock event, has created a perfect storm of bearish signals making Solana’s traders dread further price drops. We’ve already seen a 39.25% price drop for Solana over the past 30 days, and it looks like these market events could make things worse.
The scenario necessitates that investors keep a watchful eye on the whale’s movements and the overall market environment. This is especially true when considering the threat of additional downside and the likelihood that the next few days will be characterized by heightened volatility. All of this leads up to the moment when the FTX team will take the wraps off the unlocked tokens. What is happening with these particular assets is vital to comprehend, but it is also important to maintain a sense of perspective and look at developments with Solana in light of the broader crypto market.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any stocks.
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Source: https://nulltx.com/whale-withdrawal-and-ftx-unlock-could-spell-trouble-for-sol-a-potential-market-decline-ahead/