FTX Wallet Redeems $23M Worth of Solana (SOL). Will This Impact the Price?

A cryptocurrency wallet linked to FTX/Alameda, identified as H4y…gFZ, has recently redeemed 177,693 Solana (SOL) from the network’s Proof-of-Stake (PoS) system.

According to Solscan data, the wallet has moved $23.75 million worth of SOL from the PoS network, sparking discussions in the crypto community about whether these assets might soon be transferred to centralized exchanges (CEX). Despite the significant transaction, the movement represents only a small fraction of the wallet’s holdings.

The FTX-affiliated address currently holds 7.057 million SOL, valued at $943 million, which remains staked. Previous reports suggest that a considerable portion of the SOL held by FTX may have been sold through over-the-counter (OTC) deals.

Legal Fallout From the FTX/Alameda Case

The recent movement of SOL by the FTX/Alameda-affiliated wallet coincides with the upcoming hearing of former Alameda CEO Caroline Ellison, scheduled for September 24. She admitted guilt to fraud charges in 2022 after FTX’s collapse and has been awaiting her sentence.

Similarly, Sam Bankman-Fried, the exchange’s founder, was sentenced to 25 years in prison and ordered to pay $11 billion in restitution. FTX/Alameda has been permanently prohibited from trading or engaging in digital asset commodities on behalf of others.

Will SOL’s Price Rally?

As one of the largest holders of SOL, FTX’s recent redemption of the coin is attracting significant attention, particularly due to speculation over whether the move will cause SOL’s price to fall or rally, especially after the 2022 bankruptcy, which led to a sharp decline in SOL’s value.

Solana delivered strong gains in 2023, but its performance in 2024 has been more subdued. After reaching a peak of $209 in March, driven by Bitcoin’s new all-time high, SOL has been on a downward trend. Currently, it is stabilizing around $130 and may be positioned for a potential rebound.

Despite the decline, SOL remains resilient, trading at $135, with a 1.93% increase and a market cap of $63.57 billion. Since the beginning of 2024, it has climbed 35% and shows a remarkable 650% increase on the yearly chart.