SOL Surges As FTX Estate Stakes $122M Solana Amid Liquidation Concerns

Solana (SOL), the native cryptocurrency of the crypto computing platform of the same name, saw an uptrend over the weekend after news broke that FTX estate staked over 5.5 million SOL, alleviating concerns of a market dump that could trigger the crypto asset's value down.

SOL saw a mild price rebound of 2.08% over the weekend after the FTX estate, responsible for recovering assets for the now-defunct exchange's creditors, decided to stake more than 5.5 million SOL, approximately worth $122 million, from one of its major wallets on the Solana blockchain, data from SolanaFM showed.

One of the crypto wallet addresses said to be managed by the FTX estate staked the SOL with Figment, one of the staking validators of the network.

The recent development saw Solana's Exponential and Simple Moving Averages (EMAs and SMAs), exhibit short-term bullish momentum, especially since industry observers are concerned about the possible sell-off of the FTX estate's significant SOL holdings, which could also impact the broader crypto market which has been painting red indices over the past days.

If investors buy into this bullish signal, SOL's value could skyrocket and trade at $26, but only if it can surpass the hurdle at the $24 price level.

However, the market is on the lookout for the $21 price level. If SOL cannot hold this particular territory, its price could further plummet to the $19 threshold.

Last month, Delaware District Judge John Dorsey approved an order to allow the now-bankrupt crypto empire to sell, hedge price movements, or generate yield through staking off the crypto assets it is holding to repay its creditors.

The crypto holding FTX proposed to liquidate is worth around $3.4 billion and includes $1.16 billion in Solana (SOL), $560 million in Bitcoin (BTC), $192 million in Ethereum (ETH), $137 million in Aptos (APT), $120 million in Tether (USDT), $119 million in Ripple XRP, $49 million in BitDAO (BIT), $46 million in the DeFi project on LayerZero, Stargate Finance (STG), $41 million in Wrapped Bitcoin (WBTC), and $37 million in Wrapped Ether (WETH).

Initially, investors feared that FTX estate would liquidate all of its holdings, but it turned out that it has a schedule of selling or staking the crypto assets at a $200 million cap per week.

While it has a vesting schedule, there is still a possibility that the estate would sell off the crypto assets if they want.

The surge in the value of Solana seemed short-lived since it was trading down at $21.81 as of 8:53 a.m. ET on Sunday, with a 24-hour trading volume down by 50.11% at $138,651,789, representing a 0.39% decline over the past 24 hours and a 6.1% loss in the past seven days.

SOL's total circulating supply stands at 416,258,104 SOL, with its value down by 0.36% at a $9,080,389,147 market cap, based on the latest data from CoinMarketCap.