Solana: After SOL crash the unlock has been postponed what will happen?

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Solana: After SOL crash the unlock has been postponed what will happen?

Solana recently

  • Solana's co-founder briefly commented on Solana's involvement with FTX
  • Staking Token Unlock Delayed Seeing Slight Rise in Price

The SOL token began to fall on Nov. 6, and while this may have been cleared up like normal market movement at first, the drop has continued for more than two days.

As the decline continues, various theories have been put forward, but the link to the impending default of FTX seems to hold. So far, Solana's team has not made any public comment.

Opinion of founder Solana

Co-founder Anatoly Yakovenko responded briefly on Twitter, stating that Solana does not have any FTX assets. He went on to say that the company was incorporated in the United States (perhaps implying compliance with the rules) and that it had enough cash in reserve to continue operating for another 30 months, as it had reduced staff. pellets.

Huobi Research reported that FTX, through Alameda, has invested directly in several companies, one of which is Solana. Yakovenko's brief statement may not be enough as he raises more questions than he answers.

The recent sell-off and price drop of the SOL token may have been fueled by concerns about the potential dumping of the SOL token that FTX claims to hold.

However, on November 9, it was reported that Bet SOL would be released soon. And so the downtrend continues.

Unlocking SOL is postponed

The Solana unlock was scheduled for November 10, but the Solana Foundation said in a recent update that this date has been moved. This equates to approximately 5.41% of the total supply or 28.4 million SOL from 250 accounts scheduled to be unlinked at the end of Era 370.

SOL, however, has been staked again and the unlocking has been delayed. 

SOL Price action

Observing the price movement of SOL shows that the price has dropped by more than 60%. On the volume indicator, buying and selling pressure can be seen oscillating on the 6-hour timeframe.

Recession and excessive volatility are highlighted by Bollinger Bands.

Source: TradingView

The asset appears to have gained almost 1% during the trading period seen in the daily timeframe. At the time of this writing, SOL is trying to recover.

Relative Strength Index data from the same period shows that the asset remains in oversold territory. Also, if buying pressure continues, there could be signs of an impending turn out of the area.

Source: TradingView

Solana TVL goes down

The downtrend is also apparent when looking at the total value of the locked Solana, according to DefiLlama. TVL is down over 30% at the time of this writing and is valued at $427 million.

The figure shows that the value of TVL at the beginning of October has decreased by more than 1 billion USD, which is a decrease of more than 50%.

Source: DefiLama

 


Nov 11, 2022

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