One altcoin that has been affected rather a lot following the FTX and Alameda collapse is Solana (SOL). Together with the FTX tokens, Solana’s native crypto SOL has come underneath intense promoting stress. The SOL worth is buying and selling 20% down within the final 24 hours at a worth of $21.06 as of press time.
Ever because the Alameda disaster surfaced final week, the SOL worth has tanked by a staggering 50% within the final 5 days. Over the past 24 hours, there have been almost $0 million in SOL lengthy liquidations as per data on Coinalyze.
However why is the Alameda contagion spreading to Solana (SOL)? As per stories, Sam Bankman-Fried has acquired $1.2 billion price of SOL tokens by way of Alameda. Trade stories recommend that Alameda has been promoting its SOL holdings and shopping for FTT to comprise the autumn of the FTX token worth.
Moreover, with the current improvement of FTX’s buyout by Binance, CZ controls 10% of the tokens. Thus, buyers may assume that they might be higher off supporting the BNB chain as an alternative of Solana.
Sam Bankman-Fried was one of many main supporters of Solana. However along with his corporations underneath deep water, it stays uncertain on how lengthy would this help proceed to increase.
Solana Whale Liquidation
As per on-chain information, there was a significant liquidation by a Solana whale which is driving the SOL worth decrease. Citing information from Solend.fi, Chinese language crypto journalist Colin Wu explains:
Solana Whale (3oSE9CtGMQeAdtkm2U3ENhEpkFMfvrckJMA8QwVsuRbE) is in liquidation and at present has 2,450,418.5 SOL (price over $51 million) in collateral and 44,871,609.6 USDC in debt. Nevertheless, Solana is at present dealing with congestion because of the replace of the oracle.
![](https://cdn.coingape.com/wp-content/uploads/2022/11/09111112/Solana-Whale.jpeg)
It isn’t sure how far this contagion can unfold and the way rather more SOL will probably be bought within the open market. Earlier this 12 months, buyers skilled the same liquidation state of affairs with LUNA. If panic throughout retail and institutional buyers kick-in, there may very well be an additional downfall in Solana in addition to the broader crypto area. At the moment,SOL is buying and selling at 90% low cost year-to-date.
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