tl;dr
Major cryptocurrency whales are selling large amounts of Solana (SOL), transferring over 226,000 SOL (about $40 million) to exchanges recently, signaling potential profit-taking amid Solana's weak market performance. Significant sell-offs include transfers from wallets like CMJiHu, 5PjMxa, and HiN7s...
Major cryptocurrency whales are offloading their Solana (SOL) holdings, triggering growing concerns within the market. This surge in selling activity comes amid Solana’s underwhelming performance, as the altcoin continues to lag behind the broader global cryptocurrency market.
Solana’s Price Struggles as Whales Dump Millions in SOL
In a recent post on X (formerly Twitter), blockchain analytics firm Lookonchain reported that three whale wallets moved over 226,000 SOL to exchanges in recent hours. The offloading of the stack valued at approximately $40 million signals potential profit-taking or a shift in strategy among large investors. Lookonchain highlighted that CMJiHu deposited 96,996 SOL worth around $17.45 million to exchanges. Additionally, 5PjMxa deposited 91,890 SOL valued at nearly $15.98 million to Kraken. Lastly, HiN7sS transferred 37,658 SOL worth 6.73 million to Binance, realizing a profit of $1.63 million.
The pattern of sell-offs isn’t new. Over the weekend, Galaxy Digital moved 224,000 SOL valued at $41.12 million to Binance and Coinbase. Additionally, BeInCrypto reported last week that the digital asset financial services firm unstaked 250,000 SOL, valued at around $40.7 million. The firm then transferred it to Binance. Similarly, another whale has been unstaking significant portions of their Solana holdings.
The selling pressure coincides with a lack of investor enthusiasm, as evidenced by the performance of the REX Osprey Solana exchange-traded fund. According to data from Farside Investors, the ETF recorded zero net flows for most of August’s trading sessions, with only one day of a positive flow. At the same time, SOL’s price performance has been lackluster. BeInCrypto Markets data revealed that the altcoin has struggled to approach its record highs, still remaining 40% below the all-time high (ATH). In contrast, other cryptocurrencies such as ETH have experienced significant rallies, with the latest uptrend pushing its price to levels not seen since 2021. Furthermore, SOL has slipped 5.49% over the past day. At press time, it was trading at $175.64.
Positive Shifts for Solana as Whales Continue Offloading
Nonetheless, not all is bad for Solana. Some positive developments have emerged. For instance, OSL HK, a regulated cryptocurrency exchange, has announced that it will offer Solana trading to retail investors. “We are pleased to announce that OSL HK will become the first exchange in Hong Kong to support Solana (SOL) retail trading,” the announcement said. Additionally, Jeff Bezos’ Blue Origin has begun accepting SOL, alongside Bitcoin (BTC), Ethereum, Tether (USDT), and USDC (USDC) for spaceflight bookings, signaling growing mainstream adoption.
“Crypto is now a $4 trillion asset class, and the sky is the limit when it comes to its potential in the current payments ecosystem. We believe crypto and stablecoins are going to become an increasingly popular way for consumers to pay, particularly for high-end purchases, as both the consumer and merchant benefit financially from these transactions,” Alex Wilson, Head of Crypto at Shift4, stated.
The Solana ecosystem also saw a milestone with its meme token graduation rate surpassing 3%, reflecting increased activity. While these developments show promise for Solana’s broader adoption, the ongoing whale sell-offs highlight the uncertainty surrounding the asset. It remains to be seen whether the whales will continue offloading their holdings or shift strategies, which will likely impact the token’s future trajectory.