SOL Plummets Below $160 as FTX Solana Unlocking Approaches

SOL has plummeted by more than 7% to levels below $160 as investors grow weary of the upcoming FTX 11.2 million Solana unlocking.
On Feb. 24, Solana (SOL) took a nosedive, decreasing more than 7% to $158.46, the lowest it has ever been this year. The last time SOL dipped below $160 was on Oct. 20, 2024, when it closed at $159.64. At press time, Solana has not managed to climb back up past $160 and has stayed at around $159.
According to data from ethdaily.net, Solana has gone down by 6.9% in the past 24 hours. The token is currently trading hands at $159.29. In the past week, Solana has decreased by nearly 13% and even more so in the past month. Solana has fallen by more than 35% in the past 30 days.
Solana’s market cap currently stands at $78 billion, with a fully diluted valuation of $95 billion. Just a few days prior, on Feb. 24, Solana managed a brief rebound from its previous slump, surpassing the $180 mark.
According to data from DeFi Llama, Solana’s DEX volume has suffered a similar loss. The blockchain’s DEX volume has decreased by 36.7% in the past week. At the time of writing, Solana’s weekly DEX volume stands at $16.6 billion, while its daily DEX volume sits at $1.5 billion.
Since Feb. 24, Solana has lost nearly $10 billion in market cap as well as the same amount in fully diluted volume.
Why is SOL dropping?
With the FTX unlocking of 11.2 million SOL, or equal to $1.77 billion, coming up on March 1, many investors have grown weary that the event could influence the liquidity and price stability of Solana. The influx in token supply could lead to pressure on Solana’s price, potentially triggering a significant drop.
However, investors could take advantage of the opportunity presented by the price drop to accumulate more Solana. If demand holds up, Solana’s price may see a rebound soon.
According to Amberdata, last week, SOL block trades on derivative cryptocurrency exchange Deribit accounted for nearly 25% of all Solana options activity, or $32.39 million out of the total $130.74 million. This marks the second largest portion of SOL block trades ever recorded, with nearly 80% of block trades concentrated in put contracts.
During a price drop, whale investors would often opt for put option transactions that are executed over-the-counter instead of through regular buy orders on the exchange. Put options are derivative contracts that provide investors the right to buy or sell the asset, instead of an obligation. This grants buyers more minimal impact, protecting them from potential market volatility.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.