Kraken’s Warning Bells as Solana (SOL) Faces FTX Liquidation Threat

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In the world of cryptocurrency, concerns arise as FTX Derivatives Exchange hints at a possible liquidation of over 250,000 Solana (SOL) tokens, valued at approximately $13.6 million. Meanwhile, this move has triggered a reaction in the market, impacting SOL prices.

FTX Initiates On-Chain Transfer

In a strategic move, FTX Derivatives Exchange has initiated an on-chain transfer of 250,000 SOL tokens to the Kraken exchange, as revealed by crypto analytics provider Lookonchain. This maneuver aligns with FTX’s recent liquidation efforts, which have been notable in the past few months.

According to Lookonchain data, the public address associated with FTX presently holds approximately 3,408 SOL, amounting to a total value of $185,000. The market is reacting to the potential liquidation, with Solana (SOL) witnessing a 5% decline in its price, currently trading at $52.64 on spot exchanges. 

Surprisingly, SOL’s trading volume has surged by 21.35%, reaching $2,974,483,716, indicating a mixed sentiment among investors.

Solana Emerges from FTX’s Shadow

The fallout of the FTX Derivatives Exchange had a notable effect on Solana, considering the crypto project’s close ties with the company. However, recent developments suggest a shift in this narrative. 

With the bankruptcy court authorizing FTX to sell its crypto holdings for creditor repayment, the resultant sell-off encompassed various altcoins, yet the impact on Solana is now less pronounced.

As SOL experiences a temporary dip, analysts interpret this as a healthy correction, potentially propelling Solana to new heights. In spite of these turbulent times, Solana manages to sustain its market value and growth potential.