**Diving Deep: FTX’s Solana Holdings And Potential Impact**
Amidst the recent court approval allowing embattled exchange FTX to liquidate $3.4 billion in diverse digital assets, the focus has turned to the potential liquidation of Solana (SOL). As one of FTX’s prominent holdings, accounting for $1.16 billion in value, the sell-off of SOL has sparked debates and market uncertainties.
Crypto analyst MartyParty has taken center stage in the discussion, shedding light on FTX’s SOL position. MartyParty revealed that many of these holdings are staked SOL tokens linked to FTX’s sister company Alameda. Importantly, these tokens remain locked until 2025, making any immediate liquidation involving them unlikely.
MartyParty further clarified that outside of the staked tokens, FTX and Alameda only hold 7 million SOL and Wrapped SOL (wSOL). These tokens are already designated for pre-sale to the Solana Foundation. Therefore, according to MartyParty, “There is no more Solana to sell.”
Considering the daily trading volume of Solana, ranging from 350 million to 450 million tokens, it is clear that the market can absorb the FTX liquidation without significant disruption. Even a total liquidation of FTX’s SOL holdings at the current market rate would only amount to $128.6 million. Additionally, the weekly sell-off cap set at $100 million ensures market stability, as per MartyParty’s analysis.
Furthermore, MartyParty highlighted that past liquidation events have not significantly shaken the crypto market. According to him, such events are often used as narratives to spur sales, with exchanges taking advantage of panic to buy low and sell high.
Despite the speculation surrounding the potential sell-off, Solana (SOL) has shown bullish movement over the past 24 hours, with a 4% increase and a market price of $19.05 at the time of writing.
*Source: [Newsbtc](https://www.newsbtc.com/ftx/ftx-unveils-3-4b-crypto-holdings-1-16b-solana-560m-bitcoin-is-trouble-on-the-horizon/)*
*Featured image from iStock, Chart from TradingView
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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