Recent developments in the Solana market suggest possible price volatility ahead.
According to crypto analyst Ali Martinez, the number of wallets holding more than 100 Solana coins has dropped by 2.24% in the past two weeks, decreasing from 154,653 to 151,184.
This reduction indicates a shift in investor behaviour, possibly indicating a growing concern about Solana’s price movements in the short term.
FTX Auctions and the Risk of Price Decline
In addition to the declining wallet numbers, another factor contributing to the potential price drop is the large amount of Solana set to be unlocked from the FTX bankruptcy auction on March 1.
A total of 11.2 million $SOL, worth approximately $2.06 billion, will be released into circulation. FTX previously sold 41 million SOL in three separate auctions, with notable buyers including Galaxy, Pantera, and Figure.
These buyers acquired significant amounts of SOL at prices ranging from $64 to $102 per token. The substantial return rates for these buyers, such as Galaxy’s 187%, highlight the possibility that these investors may look to sell their positions, which could create downward pressure on Solana’s price in the near term.
The upcoming unlock of $SOL from the bankruptcy auction has raised concerns among market participants. The influx of coins could add selling pressure, especially given that the tokens are held by large institutional players who may not hesitate to liquidate their positions.
Also Read: Crypto Analyst Predicts Potential Rebound for Solana $SOL, Eyeing $225 to $264 Price Range
Solana’s Price Actions and Future Projections
Currently trading at $183.56, Solana has seen a 5.06% decrease in price over the past 24 hours, with a global market cap of $89.65 billion. However, its trading volume has spiked by 109.71%, indicating heightened market activity.
Despite these fluctuations, Solana’s long-term prospects remain promising, especially considering its growing institutional backing.
Solana’s 2025 price projections are critical for investors due to significant institutional expansion within the network. The rise of DeFi activities and new ETF registrations are pushing Solana into the spotlight.
As new competitors continue to enter the market, investors are questioning whether Solana’s trajectory will match the growth of other prominent altcoins.
Challenges Amid Rapid Growth
Solana has recently faced some technical challenges, including downtime on its biggest wallet, Phantom. According to officials, the platform experienced a brief period of disruption, and users were assured that all services had been restored.
They acknowledged the importance of uninterrupted access to assets and assured the community that engineers were working on measures to prevent future outages.
Hence, while Solana’s future remains bright due to growing institutional interest, upcoming events like the FTX auction and technical disruptions pose significant challenges. a’s price and market sentiment soon.
Also Read: Solana’s Stablecoin Supply Sees 73% Surge to $11.1B After $TRUMP Memecoin Debut