Solana (SOL) being auctioned by FTX and Alameda Research will be made available for trading over the next four years.
Distressed crypto exchange FTX and its sister investment firm Alameda Research have accelerated the auctioning and liquidation of their crypto holdings in the past few weeks. With former FTX boss Sam Bankman-Fried, alias SBF, currently serving a 25-year jail term, the repayment of the distressed creditors and customers is underway.
In the latest update, Bloomberg reported that about 2,000 SOL coins, worth about $288k based on the current price, were auctioned this week. According to people familiar with the matter, Pantera Capital was among the winning bids during the FTX auction.
Earlier this month, Pantera Capital and Galaxy Digital, among others, participated in an FTX auction where $2.6 billion worth of SOL were sold at a discount. Furthermore, the 41 million SOL coins being offloaded by FTX and Alameda Research are locked in smart contracts and will be available for trading over the next four years.
Reportedly, FTX estate sold the SOL coins to Pantera Capital at a higher price than $60, which was used in the prior auction.
The ongoing Solana liquidation is a huge relief to the affected FTX customers and creditors, who have waited for more than 15 months. Moreover, the restructuring of FTX through the court process has proved to be an expensive process, especially due to the legal fees.
Market Impact on Solana
The ongoing Solana auction by FTX and Alameda Research has significantly impacted the changes in SOL price. According to the latest market data, the SOL coin exchanged around $144, having slipped more than 23 percent in the last four weeks. The large-cap altcoin has, however, rallied more than 500 percent in the past year fueled by increased on-chain activity.
The Solana-based meme coins led by dogwifhat (WIF) and Bonk (BONK) have helped the blockchain become a major web3 hub. As of this report, the Solana network has facilitated more than $21 billion in bridged total value locked (TVL). Additionally, the Solana network had a daily average DeFi trading volume of over $1.2 billion and a stablecoins market cap of around $3.2 billion.
The acquisition of Solana coins from FTX by Pantera Capital and Galaxy Digital is an indication the layer one network is well-positioned to grow further in the coming years.
SOL Price Expectations
Solana’s price is largely following the general altcoin outlook, which is heavily influenced by the Bitcoin price action. If Bitcoin price continues to fall towards the supper level around $61k in the coming days, there is a high chance the altcoin industry will follow suit.
On the other hand, if Bitcoin price rebounds beyond $70k in the coming days, the altcoin bulls will awaken immediately. Meanwhile, SOL bulls must protect the support level above $140 to invalidate the ongoing market correction.
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