Whales Dump Solana-backed Seeker (SKR) in Large Quantities, But There’s Hope

Seeker (SKR), the native token for Solana Mobile’s latest Web3 smartphone, is currently being offloaded in large tranches by whales.

On-chain data from Arkham reveals that among the top 14 holders of the SKR token, only the first four are accumulating the digital asset. The remaining have parted ways with about $2.5 million in SKR in 30 days at the time of writing. For a cryptocurrency with a reported market cap of approximately $91 million, sell-offs of this magnitude within the given timeframe are sufficient to affect its price.

It goes without saying that these outflows have negatively impacted SKR’s market value. At the time of writing, the digital asset traded at $0.01537, down over 27% within the past month. Still, all hope is not lost for SKR holders, as some on-chain data will show.

Who’s Dumping Seeker?

According to Arkham’s data, Meteora, KuCoin, Bybit, and Bitget are the exchanges that recorded inflows into the SKR token. These saw a total inflow of $165,750.

On the other hand, exchanges like Byreal, Gate, MEXC, Bithumb, Crypto.com, Kraken, Orca, Robinhood, and Coinbase saw outflows.

To be clear, inflows and outflows from crypto exchanges reflect what users of these platforms are doing with the SKR token, not what the exchanges themselves are doing.

One factor that is likely taking some away from the SKR ecosystem is its lack of robust use cases. Currently, SKR holders have access to some utilities, such as on-chain governance. Users can participate in community governance, where Solana dApp store policies are discussed and decided upon. Token holders can also stake their SKR assets to Guardians who verify device authenticity and curate the dApp store.

While doing so, SKR holders help secure the network and earn yield. Still, the project’s utilities focus solely on its narrative as a token for Solana Mobile. Since it has no use case in the broader crypto ecosystem, some investors may have seen this as a reason to abandon the platform.

As with most crypto assets, SKR needs more use cases so holders have a reason not to dump their holdings.

Is There Still Hope? 3 Reasons to Consider

While SKR’s price appears to be struggling at the moment, there are several reasons showing that things could light up over time. Here are three reasons to consider:

Potential Exchange Listing

It is no secret that an exchange listing is a key driver of a cryptocurrency’s price surge. The price increase is especially significant if the crypto exchange is reputable. Top exchanges have already listed SKR. However, Binance, the leading crypto exchange, has yet to list SKR on its spot market.

Notably, SKR is currently available on Binance’s futures, Alpha, and Web3 markets. In most cases, crypto assets already trading on these markets and go further to meet specific requirements, get a spot listing on Binance. If this scenario plays out with SKR, it could attain meteoric price surges.

Increase in Token Holders

While SKR’s price is dropping, the number of token holders is increasing. The chart below shows a slow and steady increase in SKR holders. At the time of writing, the figure has grown to over 37,400 token holders.

This progressive increase in token holders shows that the SKR ecosystem is experiencing wealth redistribution rather than outright token dumping. Here, whales are offloading their holdings as retail investors accumulate. Although this is a bearish sign in the short term, it can also turn bullish in the long term.

Number of Staked SKR

Seeker’s tokenomics show that 30% of SKR’s 10 billion supply (3 billion) is earmarked for airdrops. The project allocated 2 billion tokens to the Season 1 airdrop, with the remaining 1 billion to future airdrops. In a recent tweet, the project revealed that 89.7% of the first airdrop (1.794 billion tokens) was claimed during the Seeker Season 1 SKR claims.

Interestingly, 70% of SKR’s circulating supply of 6.24 billion is staked. This means that more than triple the tokens from the airdrop are staked. This shows that, despite SKR’s price downtrend, investors believe in its long-term performance. The fewer SKR in circulation, the scarier the token, which could potentially benefit its price over time.