Solana Price Dips 4% on FTX's $5B Payout
Solana (SOL) experienced a 4% price drop on May 16, 2025, falling to $169, following the announcement of a $5 billion payout to creditors by the bankrupt FTX exchange. This event coincided with $236 million worth of SOL being unstaked, adding to the sell-off pressure.
Solana Price Volatility Amidst FTX Payouts
The Solana price decline broke below the $170 support level for the first time in May. FTX's plan to distribute $5 billion in digital assets, starting May 30, 2025, via BitGo and Kraken, is expected to increase market volatility in the coming days. The settlement process is projected to take 1-3 business days.
FTX Payouts and SOL Staking Withdrawals
The Solana price weakness aligns with a broader bearish trend in Layer-1 tokens. Data from StakingRewards shows over 1.4 million SOL unstaked in the past week. A significant portion of this unstaking likely originated from FTX's liquidation of assets.
At a price of $169 per token, the unstaked SOL is valued at approximately $236 million. Such large-scale token movements often exert significant sell pressure, particularly if the assets are channeled into exchanges or OTC desks for liquidation.
Broader Market Downturn Impacts Solana
The Solana sell-off is part of a wider downturn in Layer-1 tokens. Ethereum fell 2.7% to $2,500, while XRP and Cardano each experienced 4% losses. This synchronized decline suggests macro-driven selling pressure, possibly due to investors securing profits before the FTX payout exacerbates market volatility.
Can Bitcoin and ETF Optimism Support Solana?
Despite SOL's pullback, Bitcoin (BTC) has held above $100,000 for seven consecutive days. This relative stability might limit broader market panic, as BTC resilience often positively impacts large-cap altcoins like Solana.
PolyMarkets indicates an 82% probability of SEC approval for altcoin ETFs by June 16, 2025. This prospect might attract strategic traders seeking to capitalize on a potential price surge following SEC approval.
Key Solana Price Levels to Watch
The 4% SOL price drop reflects both internal selling pressure and broader market shifts. FTX's $5 billion distribution and associated unstaking remain key factors this week. For bulls, reclaiming $170 and maintaining support above $150 is crucial for sustaining upward momentum. A rebound is plausible if new market drivers emerge, offsetting current sell-offs. However, without this, further downside towards $160 or lower remains a risk, particularly if large wallet holders increase selling pressure.
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