Solana Dump Far From Over? Whales Continue To Dump SOL

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As a seasoned researcher with years of experience navigating the tumultuous seas of the cryptocurrency market, I can’t help but feel a sense of deja vu as I witness yet another round of significant Solana (SOL) offloadings by whales. The crypto space has always been unpredictable, and this latest shakeup is no exception.

It appears that the sell-off of Solana (SOL) by large investors, or ‘whales’, is not yet finished, as they continue to unload their SOL holdings during this market decline. The recent turbulence in the cryptocurrency sector may have influenced these whales’ pessimistic view towards Solana.

Crypto Whale Offloads $16 Million Worth Of Solana

On Lookonchain’s recent Twitter post, it was highlighted that a significant cryptocurrency holder (often referred to as a ‘whale’) has offloaded approximately 114,300 Solana tokens (SOL), valued at around $16 million, on Binance and OKX since August 4. Notably, this whale’s latest sale occurred on August 20, where they disposed of 10,000 SOL, equivalent to about $1.41 million.

Previously reported by NewsBTC was the activity of a significant crypto investor (often referred to as a ‘whale’) who offloaded approximately $86 million worth of Solana tokens this year. Now, it appears that this same investor has been active once more, with on-chain data indicating they recently sold 20,000 SOL ($2.9 million). This additional sale brings the whale’s total Solana disposal to a staggering 614,000 SOL ($89 million) since January 15.

Despite the unknown cause behind the recent surge in sales, it’s plausible that this trend may be associated with the pessimistic outlook in the Solana community. Given the challenge from rival networks like Tron and Binance Smart Chain (BSC), the vitality of Solana’s meme coin ecosystem is under threat, which could lead to a decrease in its decentralized exchange (DEX) trading volume. This volume reduction might eventually impact Solana’s price.

Data from DeFiLlama shows that Solana’s DEX volume has dropped by over 20% in the last seven days. Meanwhile, Tron and BSC’s trading volumes are up by over 436% and 15%, respectively. This development is already weighing on Solana, as SOL’s price has remained tepid. Data from CoinMarketCap shows that Solana is one of the few cryptos in the top 20 crypto by market cap not to have recorded a gain in the last seven days. 

One reason for the current bearish sentiment towards Solana is news that the U.S. Securities and Exchange Commission (SEC) has denied the Chicago Board Options Exchange’s (CBOE) applications for Spot Solana ETFs under 19b-4 filings. The SEC continues to assert that Solana falls under the category of a security.

Some Whales Remain Undeterred

Regardless of a pessimistic view towards Solana, some large-scale crypto investors have remained unfazed and seized this chance to acquire more SOL. Two such whales, notably, have recently poured millions into the cryptocurrency token—the first whale (9tuA8L) withdrew 30,000 SOL ($4.25 million) from Binance and subsequently staked these tokens on August 21.

As I delve deeper into my research, it’s worth noting that the second whale (7CsCGy) followed suit by withdrawing 26,245 $SOL ($3.72M) from Binance on August 21. This strategic move could potentially yield substantial profits, should Solana’s core strengths regain momentum. Notably, crypto analyst Ali Martinez has forecasted that SOL could surge to an astounding $1,000 in this bull market.

Currently, as I’m typing this, Solana is being traded approximately at $142, showing a decrease over the past 24 hours, based on information gathered from CoinMarketCap.

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2024-08-22 17:10