In an established trend, the wallet addresses linked to FTX, along with those associated with its sister trading firm Alameda Research, have carried out another significant transfer of Solana (SOL).
At 10 a.m. EST, just seven hours prior to this report, 188,000 SOL, valued at $31.5 million, were moved to 30 different wallets. This consistent activity appears to be a liquidation of SOL holdings by the two entities.
Blockchain analysts and on-chain data trackers have noted that this action is part of a recurring pattern. Since the start of bankruptcy proceedings, addresses associated with FTX and Alameda have regularly unstaked and transferred SOL on the same day each month. Many of these wallets have subsequently sent the funds to major exchanges like Binance and Coinbase, suggesting preparations for either liquidation or a new wave of cashing out.
Over $1 Billion in SOL Transferred Since November 2022
Recent transfers are not isolated events but part of a larger strategy of liquidation. From November 2022 to November 2023, coinciding with FTX’s bankruptcy, FTX/Alameda’s staking address has redeemed and moved a staggering 8.407 million SOL, amounting to approximately $1.094 billion. This translates to a troubling average price of around $130 per token. What makes this operation impactful—and concerning for market analysts—is its transparency. The on-chain visibility of these transfers clearly indicates that staked SOL is being converted into cash.
It’s noteworthy that Solana has been one of the primary digital assets held by FTX and Alameda, with significant early investments in the ecosystem. While this position has proven valuable, the ongoing liquidation of such a large volume of SOL raises concerns about price stability and market confidence, particularly during significant transaction days.
Over $726 Million Remains Locked in Staking Contracts
Despite the extensive transfers, a significant amount of SOL remains staked in FTX/Alameda wallets. On-chain data reveals that approximately 5.046 million SOL is still staked, currently valued at about $726 million. If the current trend continues, similar monthly shifts may persist through 2025, or until the staked funds are fully unlocked and not re-staked in FTX/Alameda wallets.
These transfers highlight the ongoing repercussions of FTX’s collapse. They coincide with a notable recovery in the broader crypto market, with Solana trading near its multi-month highs.
However, such activity poses challenges for the decentralized finance ecosystem. Frequent supply shocks from substantial institutional cash-outs do not instill confidence in consumers regarding the market’s stability.
While the current liquidation appears systematic, it underscores the enormity of FTX’s downfall and the lengthy path to restitution that lies ahead. Both creditors and market participants are keenly observing upcoming movements.
Traders should monitor wallet activity and exchange inflows regularly, as these inflows are now indicative of potential sell-side pressure in the Solana market.