BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
SUBSCRIBE
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result
Home Crypto

Panic Selling Takes Over Solana Investors As Volatility Soars

BlockNews Team by BlockNews Team
November 11, 2022
in Crypto, DeFi, Investing
Reading Time: 4 mins read
A A
Solana-Logo
1
SHARES
18
VIEWS
Share on TwitterShare on Reddit

The much-anticipated crypto volatility explosion is finally here and signals panic for Solana’s native SOL token.

You might also like

Ripple-SEC Case: XRP Price Turns Bullish As Coinbase Hints At Relisting

Solana’s Top DEX Orca Restricts Access For American Users

DefiLlama Forks into a New Platform as Internal Disputes Unfolds

Digital assets data provider Amberdata shows that the seven-day implied volatility of SOL tokens has ballooned to an annualized 270%, twice as high as Bitcoin’s (BTC) at 135%. This is a measure of Solana’s short-term expected price turbulence. Similarly, SOL’s 30-day implied volatility has spiked to 190% against BTC’s 95%.

In the same way, SOL’s seven-day call-put skew has plummeted to an all-time low of -99%, signifying record demand for bearish puts relative to bullish calls. This is typical of investors who buyouts in anticipation of price slides. Director of Derivatives at Amberdata Gregoire Magadini has noted this spike in implied volatility and commented:

“There is panic in the SOL market.”

Magadini also highlighted the anxiety among traders concerning the value of SOL, acknowledging the potential for massive liquidations. He said:

“SOL is a collateral asset. It will likely be liquidated as FTX/Alameda needs to raise cash…Therefore, the options market is pricing more volatility in SOL vs. BTC.” 

Crypto Exposed To Sam Bankman-Fried, FTX, And Alameda Most Affected

This comes in light of the news surrounding Alameda Research, the corporate sibling of distressed exchange FTX, liquidating its Solana holdings, sending SOL price down the drain. According to data on CoinGecko, the token has dropped by over 42% to $17.73 over the last seven days. Moreover, an incoming supply influx appears to have scared investors across the spot and derivatives markets.

FTX founder Sam Bankman-Fried (SBF), also the founder of crypto hedge fund Alameda Research, is one of the early investors of Solana via Alameda Research. This explains why cryptocurrencies exposed to his companies have been the most affected by the recent fallout.

The total value locked (TVL) on the Solana chain has declined by over 30% over the last 24 hours as an aftermath of the news about the potential collapse of FTX, whose effects were felt across the crypto playing field. TVL evaluates the total value of all assets locked in DeFi protocols. An increase in TVL means more coins are deposited within the DeFi protocols, indicating that bulls are in control. A plummeting TVL, however, is a sign that investors are withdrawing their funds from the ecosystem for a particular reason.

Marinade Finance, a Solana-based liquid staking protocol, is the most affected on TVL metrics, plummeting 35.1% to record $115.79 million within 24 hours. Other main protocols on Solana have experienced the same sentiment, with automated market maker Raydium descending 34.25%, liquid staking protocol Lido plummeting 43.13%, and lending protocol Solend recording a 63.07% low.

Additional lending blockchains that have also fallen victim to TVL decreases are Ethereum, BNB Chain, and Tron, down by 10.59%, 9.68%, and 8,84%, respectively, over the same period.

Solana validators in charge of the blockchain’s security are set to unlock almost $800 million of their SOL holdings, which would amount to approximately 5.4% of the token’s entire supply. 

Moreover, prolonged token emissions are likely over the near term, which would keep supply-side pressures significant.

Citing a TIE Research note posted on Wednesday, November 9:

“In addition to continued withdrawal of SOL from validators, our emissions & unlock tracking for the token flagged an upcoming core team allocation vesting in 11 days. This unlock represents 2,558,000 SOL coming to market. Emissions will continue at their standard rate of 68,493 SOL/day.”

An expected minimum of an additional 32,214,758 SOL will be available to be sold on the secondary market. According to TIE Research, this number will increase due to more validator deactivation.

Despite the recent turbulence surrounding the SOL token, Solana Labs co-founder Anatoly Yakovenko holds firm to his bullish stance on the Solana network and is undeterred by the recent losses. In a November 9 Tweet, he referred to the quality of builders and recent network-level improvements as big wins, saying:

“I said this on stage at Breakpoint just a few days ago – the builders on Solana are second to none, and the projects they’re building can often only be built on Solana.”

Solana’s price chart shows a bullish momentum and further constant potential. Moreover, the bulls have shown their deterrence and are taking control of the market, hoping for the long term as the market shows signs of change.

The RSI indicator appears to be 37, which shows the crypto’s growing value as it has past the undervalued region. Nevertheless, the RSI score follows an upward movement, which signifies an increasing market while gesturing toward decreasing dynamics. The ascending RSI score indicates buying activity exceeds the selling activity.

SOL/USD Four-Hour Chart

According to this analysis, SOL is expected to have a bright future, as bulls are taking the bears entirely out of the dip, provided the price breaks the market.

Tags: cryptoDeFiSolana
TweetShareShare

Recommended For You

Ripple-SEC Case: XRP Price Turns Bullish As Coinbase Hints At Relisting

by BlockNews Team
March 22, 2023
0
xrp

Coinbase could relist the XRP token if Ripple wins the ongoing lawsuit against the SEC. The exchange will initiate the relisting process immediately after the court pronounces itself...

Read more

Solana’s Top DEX Orca Restricts Access For American Users

by BlockNews Team
March 22, 2023
0
orca.so

US-based users will be banned from trading on Orca’s web interface beginning March 31st. Orca said the ban exempts those who trade directly using smart contracts and their...

Read more

DefiLlama Forks into a New Platform as Internal Disputes Unfolds

by BlockNews Team
March 22, 2023
0
DefiLlama

Blockchain data platform DefiLlama is in turmoil following its employee's rejection of its Token Launch Plan.  Now, the creators of one of DeFi's prominent dashboards have made a...

Read more

Massive USDT Transfer – Is This The Reason Behind The Current Crypto Market Shift?

by BlockNews Team
March 21, 2023
0
USDT

The crypto market has witnessed a dramatic couple of weeks, leading to uncertainties about what the future holds for the digital asset sector. Crypto debunking in the United...

Read more

Sam Bankman-Fried Receives $2.2B in Payment from FTX, According to New Management

by BlockNews Team
March 21, 2023
0
SBF

FTX made payments totaling $3.2 billion to its founder Sam Bankman-Fried and other key employees Most of the payments came from Bankman-Fried's trading firm Alameda Research Current FTX...

Read more
Next Post
FTX-Logo

Bahamas Securities Commission Freezes FTX's Assets

Related News

Meta-Logo-on-Phone

Mark Zuckerberg’s $71 Billion Loss Due to Metaverse Flaws. Are Blockchain Projects at Fault?

September 27, 2022
Around the Block

Around The Block – FEB 18 Week in News

February 18, 2023
SBF-FTX

Sam Bankman-Fried Attempted to Broker FTX Bailout

November 22, 2022

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • Crypto Twitter Thinks the Fed’s $297B Balance Sheet Expansion Is ‘QE’, but It’s Not March 22, 2023
  • Ripple-SEC Case: XRP Price Turns Bullish As Coinbase Hints At Relisting March 22, 2023
  • Solana’s Top DEX Orca Restricts Access For American Users March 22, 2023

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?