Why Are FTX-Linked Wallets Transferring Solana, Despite The Significant Rally?

On-chain analysis tool PeckShield's data indicated on Nov. 14, 2023, that FTX-labelled addresses had transferred 250,000 Solana SOL/USD worth around $13.5 million and $4 million in Tether (CRYPTO: USDT) stablecoins to crypto exchange Binance and trading firm Wintermute in the past eight hours.  

Price Action: In the past 24-hour trading, Solana's price has seen a 3% increase, taking its past seven-day trading gains to 27% and monthly gains at 155%.

Meanwhile, the past 24-hour trading volume saw a 16% surge with the market cap rising around 4%. The market cap pushed beyond $20 billion indicating a strong holding of the token.

Solana has been the top-performing major cryptocurrency amid long-term optimism for its blockchain technology. The surge in price could also be due to the debtor group staking over $120 million of Solana tokens in a surprise move in October, which erased fears of a likely sell-off, CoinDesk reported.

Read Next: Solana Hits New Annual High At $58 — Analyst Predicts 'Ethereum Killer' Could Skyrocket To $1,000

What Is Cooking With FTX? The wallets controlled by a debtor group that oversees the FTX bankruptcy proceedings reflected these transfers of SOL and USDT to the open market for sale. The news also came on the heels of a $30 million transfer of Solana to Binance and Kraken in the past week.

To date, the debtor group has moved $100 million in Solana to exchanges in a series of transactions. Partial holdings were obtained by unstaking some $67 million worth of Solana.

CoinGape reported, citing a popular crypto analyst Bluntz, that FTX has a consistent selling pattern, ranging between 250,000 to 700,000 Solana daily over the past two weeks. This has not impacted the price of the token.

Also Read: Bitcoin, Ethereum, Solana Push Crypto Fund Inflows Above $1B For 2023: What's Next If Spot ETFs Are Approved?

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