Bitcoin, Ethereum, and Solana will face selling pressure due to the impending $3.4 billion sale of FTX’s crypto assets. As a result, experts hint at a ripple effect in the market.
FTX has achieved a successful recovery of approximately $7 billion in assets, including a notable sum of $3.4 billion in cryptocurrencies. Within this digital asset portfolio, there is approximately $1.2 billion worth of SOL, $560 million in Bitcoin (BTC), and $192 million in Ethereum (ETH). Recent filings suggest that, following a court hearing, there may be consideration of a proposal to introduce token sales as part of a repayment plan for creditors.
This development has sparked volatility in the broader cryptocurrency market. However, it’s crucial to note that FTX does not intend to flood the market with its entire $3.4 billion crypto holdings all at once. In accordance with filings from August, the exchange has the capacity to liquidate crypto assets within a range of $50 million to a maximum of $200 million per month. This approach ensures that FTX’s cryptocurrency holdings will not all be released into the market simultaneously.
Furthermore, these assets will be gradually and linearly released on a monthly basis until January 2028. For instance, the 7.5 million SOL obtained from Solana Labs by Alameda Research will become available on March 1, 2025, while another tranche, consisting of 61,853 SOL, is scheduled to unlock on May 17, 2025.
While concerns loom over the cryptocurrency market, strong fundamental development of the network and gradual release of assets may help alleviate some of the fears surrounding FTX’s upcoming sell-off. Despite short-term selling pressure, investors believe in the Solana network’s strong fundamentals and future potential. You can check our Solana coin price prediction for more fundamental and technical details before investing. Here are some of the recent developments:
Solana Network Thrives Amid FTX Asset Liquidity Selling Pressure
The Solana ecosystem has been buzzing with a series of encouraging developments. In the midst of a bear market, Solana has strategically built high-profile partnerships, boosting its development activity and positioning itself as an attractive hub for decentralized finance (DeFi) protocols.
Visa expanded its USDC settlement capabilities to the Solana blockchain. It is the first time a major traditional finance player has considered Solana for payments. Visa’s decision was influenced by Solana’s impressive transaction throughput and low costs. The Solana blockchain boasts 400-millisecond block times, an average of 400 transactions per second (TPS). It has the ability to handle over 2,000 TPS during peak demand.
MakerDAO, a leading stablecoin issuing protocol, also chose Solana as its preferred network. MakerDAO’s co-founder, Rune Christensen, proposed building the protocol’s stand-alone blockchain by forking Solana’s codebase, citing Solana’s technical capabilities and strong developer ecosystem as key factors in the decision.
The Solana ecosystem has seen growth in its DeFi credentials, with Maple Finance returning to Solana after leaving in the wake of the FTX incident.
Despite challenges, the network’s total value has more than doubled year-to-date, reaching nearly $790 million at present. As a result, if Solana faces selling pressure due to FTX liquidity selling, it could be a great opportunity for accumulation.
Source: https://www.cryptonewsz.com/solanas-resilience-opportunities-amidst-challenges/