FTX Estate Stakes 5.5 Million SOL Tokens Valued at $122 Million in Boost to Solana Confidence

The post FTX Estate Stakes 5.5 Million SOL Tokens Valued at $122 Million in Boost to Solana Confidence appeared first on Coinpedia Fintech News

The FTX estate recently staked 5.5 million Solana (SOL) tokens, valued at an impressive $122 million. This strategic move is seen as a vote of confidence in Solana’s future, countering concerns of a potential sell-off that could have affected SOL’s market value.

The estate’s decision to stake SOL signifies its optimistic outlook on Solana’s long-term potential. Notably, this decision coincides with ongoing legal proceedings involving Sam Bankman-Fried, ex-CEO of FTX, in fraud charges. Will Solana’s Price Increase Counter FUD? Crypto whales have high hopes. Let’s see what is next with SOL. 

On October 14th, Whale Alert reported a transfer of 5.5 million SOL between two unidentified wallets. Shortly after, crypto analyst Ashpool identified FTX as the source of this significant transaction. 

Understanding The Mechanism Behind Staking

Staking, a pivotal process in cryptocurrencies, entails participants locking up a specific amount of coins for a predetermined duration. They actively contribute to the network’s security and functionality by doing so. In return, stalkers receive rewards in the form of additional coins. In Solana’s case, SOL tokens are granted to those who lock up their holdings. This practice helps secure the network and encourages long-term commitment from the crypto community.

FTX’s Relationship with Solana

FTX’s early investment in Solana has granted the exchange a steady influx of SOL tokens through an established vesting schedule. These unlocked tokens allow the FTX estate to choose when and if to liquidate their holdings. The estate’s primary responsibility is recovering assets for the exchange’s creditors. This move to stake 5.5 million SOL signifies the estate’s decision to retain its investment for the time being, which could be interpreted as a reassuring move for traders apprehensive about potential liquidation. Currently, they are holding 55.8 million SOL, worth $1.16 billion. 

Solana’s Market Performance

Despite concerns about the impact of FTX’s bankruptcy on Solana, the native cryptocurrency has displayed notable resilience. Over the past month, SOL’s value has surged by an impressive 16.06%. Additionally, recent rumors suggesting the potential shutdown of the Solana blockchain were swiftly debunked, further emphasizing the network’s robustness.

SOL is trading at $21.93, showcasing a 2.34% increase over the last 24 hours. The token’s daily trading volume has also experienced a notable uptick, reaching $267.07 million. These figures underscore Solana’s enduring strength in the cryptocurrency market, cementing its position as a significant player in the blockchain ecosystem.

The Bottom Line

FTX’s decision to stake a substantial amount of SOL tokens indicates confidence in Solana’s future and displays the potential of staking as a mechanism for boosting and unifying blockchain networks. As Solana continues demonstrating resilience and innovation, its trajectory in the crypto market remains one to watch closely.