Solana (SOL) Falls Over 7% to $158.70 Amid FTX Unlocking Concerns
Solana (#SOL) has experienced a significant decline, dropping over 7% in 24 hours to $158.70, its lowest price this year. It has fallen nearly 13% in the past week and 35% in the last month.
Key Points on Solana's Price Decline
- Market cap stands at $78 billion, with a fully diluted value of $95 billion.
- Onchain data indicates a slowdown in decentralized exchange (DEX) activity.
- Weekly DEX volume decreased by 36.7% to $16.6 billion; daily volume is now $1.5 billion.
- Concerns about an upcoming FTX derivatives exchange unlocking event on March 1 are prevalent, with 11.2 million SOL ($1.77 billion) expected to enter the market.
- Solana has already lost approximately $10 billion in market cap, with fears that the unlock could lead to further declines.
Future Predictions for Solana
- VanEck forecasts Solana could reach $520 by the end of the year.
- More conservative estimates suggest a price range between $280 and $340 by 2025.
- Some analysts warn of a potential drop to $100 due to negative sentiment linked to memecoin activity on the platform.
Investor Sentiment
- The derivatives market shows caution among traders, with SOL block trades on Deribit making up 25% of all options last week, totaling $32.39 million.
- 80% of these trades were put options, indicating risk management strategies among large investors.
- Potential for recovery exists if buyers engage, but prolonged trading below $160 may increase selling pressure.