The cryptocurrency market is preparing for a significant token unlock event, and Solana ‘s native token SOL has experienced a significant decline, sliding below $140 for the first time this year.
As bankruptcy administrators prepare to release 11.2 million SOL tokens, valued at approximately $1.77 billion, from the former FTX exchange on March 1, the price movement has occurred.
On February 24, the token’s price plummeted by over 7% to $158.46, marking its lowest point in 2025. This is the continuation of a downward trend that has resulted in a nearly 13% decrease in SOL over the past week and a 35% decrease in the last month.
According to data from market analytics platforms, Solana’s market capitalization is currently $78 billion, with a fully diluted valuation of $95 billion. The weekly volume of the decentralized exchange (DEX) on the blockchain has decreased by 36.7% in the past week, reaching $16.6 billion.
The sentiment towards bearishness has increased in the trading activity of derivatives platforms. According to Amberdata, SOL block trades on Deribit constituted nearly 25% of all Solana options activity last week, with put contracts accounting for approximately 80% of these transactions.
What the FTX Token Unlock Means for Solana’s Liquidity and Price Stability
The market is currently experiencing uncertainty due to the forthcoming unlocking of the FTX token. The substantial quantity of tokens released has prompted apprehension regarding the potential effects on Solana’s liquidity and price stability, as the token’s value may be subject to further pressure due to the increased supply.
Market analysts are closely watching key price levels. If SOL drops below $155, some technical analysts anticipate a short-term decline toward $112. More bearish projections suggest it could fall to $100 or even $79. Given this volatility, monitoring the real-time SOL to USD rate can offer valuable insights into potential entry and exit points for traders.
Liquidation data indicates a concentration of long positions between $120 and $140, potentially exacerbating the downward pressure if these positions are compelled to close. The recent market fluctuations, due to the price decline to $140, have already resulted in $21 million in long liquidations.
Solana’s Relative Strength Index (RSI) has decreased to 30, suggesting that the market is oversold. Nevertheless, traders observe that a trend reversal would necessitate a resurgence in purchasing interest at the current price levels.
PumpFun, a Solana-based meme coin launchpad, has announced the testing of new Automated Market Maker (AMM) liquidity pools in response to market conditions. The initiative aims to facilitate decentralized trading directly on their platform rather than relying on external exchanges.
The beta version of PumpFun’s AMM is operational, and it includes a swap interface that enables users to exchange SOL for meme coins. If it is effectively implemented, this development has the potential to increase the demand for Solana and network activity.
As indicated by trading volume metrics, Solana’s daily DEX volume has decreased to $1.5 billion. The blockchain’s overall activity metrics have experienced comparable declines, indicative of the broader market sentiment.
Recent blockchain analysis has revealed that the Bybit intruder has been utilizing Solana meme coins to launder stolen funds, thereby introducing an additional layer of negative market sentiment to the ecosystem.
The outcome of the FTX token release is still uncertain. Market participants observe that the decision by the firms that acquired these tokens from the FTX bankruptcy auction to maintain their positions rather than liquidate them could potentially contribute to the stabilization of prices.
Solana’s price charts indicate that it is currently in a descending parallel channel, which typically indicates that the momentum will remain bearish unless a distinct breakout occurs.
