In an unprecedented action in the cryptocurrency markets, a large whale has bagged a neat profit of about $4.5 million from the unstaking and depositing of a huge sum of Solana (SOL) into Binance.
This whale’s move to withdraw a big chunk of its Solana stash—staked for over a year—brings to light the unstable nature of the crypto market. It also spotlights the not-so-rare moves by large investors to take advantage of dips and surges in that market.
The Whale’s Journey with $SOL
The whale made a monumental decision two hours ago, depositing 96,155 SOL, worth around $13.49 million at current market prices, into Binance. This move may seem random or poorly planned; however, it follows a brilliant year-long strategy by the whale that dates back to the 88,493 SOL withdrawal from Binance performed a year ago. That withdrawal was worth around $8.95 million at the time. The price of Solana was much lower then; however, “stak[ing] it in the process” yielded a much higher Solana price at the time of this whale’s current SOL deposit into Binance. Indeed, according to some, this seems like a blatant market confidence signal.
When the whale pulled out its Solana holdings, the price of SOL was considerably lower than it is today. One year ago, the whale withdrew the funds at an approximate average price of $101 per SOL. At that price, the total worth of the 88,493 SOL that it pulled out was just under $8.95 million. Now, with Solana priced around $140, the whale’s unstaking of 96,155 SOL has resulted in a hefty profit, as the current value of the deposit is around $13.49 million.
At the market’s pinnacle, when SOL achieved a price of $260, the whale’s SOL stash was valued at a remarkable $25 million, showcasing just how large the potential gains could have been had the whale chosen to sell beforehand. Price fluctuations aside, the whale’s decision to unstake and deposit the SOL into Binance suggests a strategy that is at least in part about taking advantage of current market conditions. From where we sit, the transaction is, in essence, a walk-and-talk in crypto school about what the market can do when it sees a big player coming or going.
Leveraged Position on $SOL by Another Investor
Concurrently, an intriguing move happened on Hyperliquid, a decentralized perpetual exchange. An individual deposited 2 million USDC, a stablecoin pegged to the U.S. dollar, with the platform and opened a leveraged position on SOL. This person entered a long position with 3x leverage at a price of $142.54 per SOL. This individual is banking that Solana’s price will vault above that level, and given the 3x leverage, the potential for both amplified profit and risk is very much in play.
Still, this setup is not without some risk. The leveraged trade has a liquidation price of $97.45, and if the price of Solana falls below this, the investor could be looking at a total loss of their position. So this is a trade that can be described as high-risk, high-reward, where the investor is counting on a surge in Solana’s price to pay off while also being on the hook for a potential total loss if the market moves against them.
Common strategy in the crypto market, leveraged trading carries heightened risks—especially in volatile markets like Solana, where price swings can be drastic. For the past few weeks, the price of SOL has been fluctuating between $130 and $150. The investor’s position, then, is riding a fine line between profitable and potentially liquidated trades.
Solana’s Market Performance and Implications for Traders
The current market trends for Solana offer another reminder of how volatile this cryptocurrency is. Prices swing up and down, almost seemingly at times, under the direction of large institutional traders and those utilizing leveraged trades, certainly not setting retail individual traders up for any sort of consistent winning environment. Favorability among these investor types and others has bred a whale class that appears to be in no rush to sell and has seemingly underpinned the price for Solana, at least tentatively.
For the whale who unstaked and deposited $SOL to Binance, the current price surge in Solana provided an opportunity to capitalize on past investments. While the whale’s move was executed with significant foresight, it also serves as an indicator that large investors are remaining cautious and waiting for favorable conditions to make their moves. Similarly, the investor on Hyperliquid who entered a leveraged long position will be hoping for a sustained price increase to avoid liquidation and maximize potential gains.
These large deposits and leveraged positions suggest there is still strong interest in Solana, with many investors seeing a lot of potential in the cryptocurrency, despite the risks. For traders, however, the key is to manage those risks effectively in such a volatile environment.
Conclusion
Recent actions by crypto whales and leveraged traders demonstrate how Solana remains a key player in the cryptocurrency market. The decision by one whale to unstake and deposit $SOL into Binance does not only reveal the profitable opportunities that the current crypto space presents, but it also sheds light on the types of calculated moves that larger market players tend to make in order to maximize their returns. Meanwhile, an investor on Hyperliquid appears to be moving in the opposite direction: taking a high-risk, high-reward approach by leveraging their position in Solana with the hope of catching the price momentum wave. Both action types signal a continued mix of caution and boldness as the market trades sideways.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Image Source: jruiz1108/123RF // Image Effects by Colorcinch
