Key Takeaways:
- A16z and Alameda unstake over 11 million SOL tokens as a part of the FTX bankruptcy proceedings.
- The move is unlikely to stir the Solana market.
- The demand for SOL remains strong.
YEREVAN (CoinChapter.com) — The now-bankrupt FTX exchange, its sister company Alameda, and venture capital firm Andreessen Horowitz (a16z) collectively reclaimed over 11.5 million SOL tokens worth about $255 million amid the bankruptcy proceedings.
As CoinChapter reported previously, defunct crypto exchange FTX got approval to liquidate its assets on Sep. 13. The bankrupt crypto exchange reportedly had $3.4 billion in various crypto assets, and SOL holdings topped the pile at $1.16 billion.
However, Solana and the broader altcoin market are unlikely to face more selling pressure. Michael Novogratz’s Galaxy Finance is managing the crypto holdings, and they make the most money the higher they can sell the SOL and other assets. Thus, Galaxy won’t short the token and get rid of it cheaply.
Furthermore, US Bankruptcy Judge John Dorsey approved FTX’s request to sell up to $50 million worth of assets every week. Judge Dorsey also allowed FTX to enter into hedging and staking agreements to minimize volatility risks and earn passive income.
Investor Interest in Solana Remains Strong
Meanwhile, investor interest in Solana remains strong.
According to the weekly CoinShares report, the Network saw a weekly inflow of $5.1 million in late September, while the outflow from Ethereum stood at $1.5 million. As a result, Solana’s year-to-date inflow amounted to $31 million against Ethereum’s outflow of $114 million in the same period.
Moreover, the top five protocols on Solana have gained double digits in total value locked (TVL) in the previous month, as seen in the chart below. The growth demonstrates retail investors’ willingness to hold assets on the Solana Network.
Furthermore, Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE), a fund offering exposure to several smart contract platforms besides Ethereum, reported it held more Solana than any other asset.
The holdings stood at 27% of the overall asset basket on Oct 4. Cardano (ADA) followed with just below 26%, while Polygon (MATIC) and Polkadot (DOT) holdings stood at 15% and 14%, respectively. Solana also took third place with 1.25% in another Grayscale Fund basket, Digital Large Cap Fund (GLCF), after Bitcoin (70%) and Ethereum (26%).
Notably, the Solana token price rose 3% on Oct 6, reaching $23.5 in the European session and bringing its 10-day gains to 25%.
