Solana (SOL) has witnessed a sharp decline, with its value dropping by over 7% to fall below $160 as investors become increasingly concerned about the imminent FTX unlocking of 11.2 million Solana tokens.
February 24: A Day of Notable Decline
On February 24, Solana experienced a substantial drop, falling more than 7% to $158.46, marking its lowest point this year. This is the first time since October 20, 2024, when SOL closed at $159.64, that the cryptocurrency has dipped below $160. Currently, Solana remains around $159 and has not been able to climb back above the $160 mark.
Market Performance and Capitalization
According to data from crypto. news, Solana has decreased by 6.9% in the past 24 hours and is currently trading at $159.29. Over the past week, Solana has declined by nearly 13%, and in the past month, it has fallen by over 35%. The market cap of Solana stands at $78 billion, with a fully diluted valuation of $95 billion. Recently, on February 24, Solana briefly rebounded, surpassing the $180 mark.
Decline in DEX Volume
Solana’s DEX volume has also suffered significant losses. Data from DeFi Llama shows that the blockchain’s DEX volume has decreased by 36.7% in the past week. At present, Solana’s weekly DEX volume stands at $16.6 billion, while its daily DEX volume is $1.5 billion. Since February 24, Solana has lost nearly $10 billion in market cap and the same amount in fully diluted valuation.
Reasons for the Decline
The impending FTX unlocking of 11.2 million SOL, valued at approximately $1.77 billion, set for March 1 has raised concerns among investors. The increase in token supply could pressure Solana’s price, potentially leading to a significant drop. However, some investors might see the price drop as an opportunity to accumulate more Solana, potentially leading to a rebound if demand holds steady.
Key Takeaways
- SOL Price Drop: Solana has decreased by over 7%, falling below $160.
- Market Cap: Currently valued at $78 billion, with a fully diluted valuation of $95 billion.
- DEX Volume: Decreased by 36.7% in the past week.
- FTX Unlocking: 11.2 million SOL tokens to be unlocked on March 1, causing investor concerns.
| Key Information | Details |
|---|---|
| SOL Price Drop | More than 7%, below $160 |
| Market Cap | $78 billion |
| Fully Diluted Valuation | $95 billion |
| DEX Volume | Decreased by 36.7% in the past week |
| FTX Unlocking | 11.2 million SOL tokens on March 1 |
Market Activity and Block Trades
According to Amberdata, last week, SOL block trades on the derivative cryptocurrency exchange Deribit accounted for nearly 25% of all Solana options activity, amounting to $32.39 million out of $130.74 million. This represents the second-largest portion of SOL block trades ever recorded, with nearly 80% of block trades concentrated in put contracts.
