Solana (SOL) has been one of many tokens hit by the FTX decline in the previous couple of days. Given FTX’s publicity to the token and the truth that they maintain a large place, it has suffered an enormous decline in tandem with the FTT token. The token has already misplaced greater than 50% of its worth because the weekend. Nonetheless, the massacre will not be over for SOL holders as some developments come to mild.

Extra Solana Being Unlocked

Even with the market already being oversaturated with sell-offs, there’s extra SOL scheduled to be put into circulation. Beforehand the Solana Epoch 370 was scheduled to launch about 90 million SOL into the market earlier than the workforce intervened, however there’s nonetheless a large quantity of tokens left to be unlocked.

In lower than 10 minutes from now, Epoch 370 exhibits a deactivating stake of round 30 million SOL to be unlocked. As soon as this occurs, it would flood the market with tens of tens of millions of tokens into an area with already diminished demand.

30 million SOL set to be unlocked | Supply: Solana Compass

Now, beforehand, the whales whose token unlocks have occurred would re-stake some or the entire tokens, however that was when the worth of SOL was nonetheless excessive and the market remained sturdy. With so many shorting the market and SOL costs anticipated to fall decrease, it’s seemingly that the proprietor of those tokens would promote their tokens as a substitute of staking them as soon as extra.

The affect of this unlock could possibly be catastrophic for the worth of the digital asset. Assume single-digit SOL costs for the primary time in additional than a yr. The bears will seemingly proceed to carry the market hostage, dragging the worth of SOL and others down with it.

SOL worth falls to $16 | Supply: SOLUSD on TradingView.com

Solana has already been kicked out of the highest 10 largest cryptocurrencies by market cap because it started its decline. The token now sits on the thirteenth spot with a market cap of $5.5 billion. If these tokens being unlocked discover their technique to the open market, it could possibly be one other pink day for the digital asset.

SOL worth is down 24% within the final 24 hours and 10% within the final hour. On a 7-day interval, its worth is already down 55% to be buying and selling at $14.11 on the time of this writing, in accordance with knowledge from Coinmarketcap. 

Featured picture from Crypto Information, chart from TradingView.com

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