- The sale of $1.9 billion worth of locked-up SOL tokens by the FTX estate reflects strong institutional interest in Solana.
- Entities like Galaxy Trading, a subsidiary of Galaxy Digital, setting up a $620 million fund to acquire FTX’s discounted SOL, demonstrates confidence in Solana’s potential despite the tokens being locked up.
The FTX estate recently conducted a significant sale of SOL tokens, amounting to approximately $1.9 billion, to alleviate debt pressures stemming from the collapse of the crypto exchange. This move follows the estate’s decision to divest a substantial portion of its SOL holdings, valued at around $2.6 billion, with up to 30 million SOL tokens sold at a price of $64 each. Despite being sold at a discount due to their locked-up status, the tokens garnered considerable interest from investors.
Galaxy Trading, a subsidiary of Galaxy Digital, emerged as a key player in the acquisition, establishing a $620 million fund dedicated to purchasing FTX’s discounted SOL. This fund, which carries a management fee of 1%, underscores the confidence of institutional investors in the long-term potential of Solana.
The FTX estate currently holds approximately 41 million locked-up SOL tokens, valued at around $7.5 billion. Despite the recent sale, Solana continues to maintain a robust market position, trading at $174.2 as of 1 p.m. ET today. This resilience is noteworthy, considering the nearly 7% 24-hour decrease in its price, indicating sustained investor interest in the project.
Since the collapse of FTX in November 2022, investors have been eager to capitalize on the firm’s Solana holdings, recognizing the significance of Solana within FTX’s digital asset portfolio. Notable investors, such as Neptune Digital and Pantera, have already initiated strategic investments in SOL, further fueling market activity around the token.
Solana’s journey has been marked by significant fluctuations, experiencing a price dip to around $10 post-FTX collapse, followed by a remarkable rebound in early 2024. The token reached an all-time high market capitalization of $81 billion in mid-March, driven largely by the popularity of memecoins. CoinGecko Research even dubbed Solana as the most popular blockchain of the year thus far.
Despite recent market corrections, Solana’s market capitalization remains robust at $76.9 billion, solidifying its position as the fifth-largest cryptocurrency by that metric. This enduring market strength underscores the resilience and potential of Solana as a leading blockchain platform in the digital asset space.
The sale of locked-up SOL tokens by the FTX estate highlights the growing investor interest in Solana and its potential as a leading blockchain platform. With significant funds dedicated to acquiring discounted SOL, institutional players like Galaxy Trading signal confidence in Solana’s long-term prospects. Despite market fluctuations, Solana’s resilience and robust market capitalization underscore its position as a key player in the cryptocurrency space, paving the way for continued growth and innovation.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
