A significant whale or institutional player recently made a notable move in the Solana market, unstaking and withdrawing 139,532 SOL tokens, valued at approximately $19.5 million, just two days ago.
Shortly after, the same entity deposited 139,447 SOL ($19.5M) to Binance, incurring a hefty loss of $5.5 million in the process.
A whale/institution unstaked and withdrew 139,532 $SOL($19.5M) 2 days ago.
Then deposited 139,447 $SOL($19.5M) to #Binance at a loss of $5.5M in the past 2 days.
The whale withdrew 138,894 $SOL($25M) from #Binance on July 22, when the price was $180.https://t.co/A6AKhPZvZn pic.twitter.com/mMnrGJD3iQ
— Lookonchain (@lookonchain) August 31, 2024
This whale had previously withdrawn 138,894 SOL ($25M) from Binance on July 22, when the token was trading at $180. Since then, the market has taken a bearish turn, with Solana’s price dropping by 16% over the past month, currently trading below $135. This decline reflects the broader trend in the crypto market, which has been under pressure in recent weeks.
General Bad Market, Also A Contributing Factor
The situation is further complicated by Solana’s inflationary nature. Every 30 days, the network’s market capitalization inflates by approximately $1 billion. This persistent inflationary pressure is one of the reasons Solana’s token price struggles to maintain its value, even as its market capitalization continues to reach new all-time highs.
For comparison, Ethereum has inflated by $160 million, and Bitcoin by $215 million over the past 30 days. Despite these figures, Solana’s inflation rate significantly outpaces its competitors, contributing to its current price woes.
Every 30 days Solana inflates by about $1B, this is why the token price struggles but the MC keeps hitting all time highs
By comparison, Eth has inflated by $160M in the last 30 days and Bitcoin has inflated $215M in the same period pic.twitter.com/PQQQRTjCZa
— artchick.eth 🔥👠(@digitalartchick) August 31, 2024
This recent activity highlights the ongoing challenges faced by Solana investors and the broader market. The whale’s substantial loss underscores the volatility and risks inherent in the crypto space, especially in an inflationary environment where token supply continuously increases. As the market continues to evolve, investors will need to remain vigilant and adapt to the changing landscape.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
Image Source: burdyak/123RF // Image Effects by Colorcinch
