Solana May Underperform Bitcoin, Ethereum and XRP Amid Deleveraging, Priced-In Buys and FTX Distributions

• Deleveraging and forced selling magnify SOL declines.

• Corporate SOL purchases were largely priced in, prompting a buy-the-rumor, sell-the-news reaction.

• Market-wide liquidations topped $290 million; SOL derivative liquidations were $31.6 million in 24 hours.

Solana underperforming: Read why deleveraging, priced-in buys, and FTX distributions pressure SOL now—expert analysis and market data. Learn what traders should watch next.

Why is Solana underperforming Bitcoin, Ethereum, and XRP?

Solana underperforming reflects concentrated leverage and lower liquidity compared with Bitcoin and Ethereum, making SOL more vulnerable to market-wide deleveraging. Corporate purchase announcements were already priced in, and imminent FTX estate distributions increased short-term selling pressure, accelerating a classic profit-taking correction.

How are liquidations and derivatives impacting Solana’s price?

Market-wide liquidations exceeded $290 million in 24 hours, according to CoinGlass data. Solana derivatives accounted for approximately $31.6 million of forced selling, compared with $68.5 million for Ethereum and $52.2 million for Bitcoin. At the time of reporting, CoinGecko shows SOL trading near $213, down about 3% in 24 hours and over 9% on the week.

Who is saying SOL is vulnerable and why?

Analysts including Dean Chen, an analyst at crypto exchange Bitunix, pointed to concentrated leverage and recent liquidations as drivers of Solana’s underperformance. Gordon Grant, portfolio manager and head of derivatives at Bitwise, noted that upcoming FTX Recovery Trust distributions likely dampened market sentiment and increased selling pressure.

Were corporate buys a major bullish catalyst?

Forward Industries and DeFi Development Corp. announced large Solana purchases, but markets had largely priced those moves in prior to execution. Forward raised $1.65 billion and signaled intent to buy SOL before the acquisition, and DeFi Development has been accumulating since April, reducing surprise upside and encouraging short-term profit-taking.

Frequently Asked Questions

Will Solana reach a new all-time high this year?

Predictors on Myriad show roughly 50-50 odds that Solana will surpass its record $293.31 in 2025, down from near 65% probability earlier in the week—indicating reduced market conviction after the pullback.

How should traders manage exposure to SOL now?

Limit leverage, set clear stop levels, and monitor liquidation metrics and scheduled large distributions. Short-term risk is elevated because SOL historically moves more sharply on deleveraging compared with larger-cap tokens.

Key Takeaways

• Deleveraging risk: SOL’s higher leverage and lower liquidity make it more sensitive to forced selling.
• Priced-in news: Corporate Solana purchases were largely anticipated, prompting sell-the-news behavior.
• Watch events: Upcoming FTX estate distributions and liquidation spikes are key catalysts to monitor.

Conclusion

Solana underperforming its blue-chip peers this week is a function of concentrated leverage, priced-in corporate buys, and the market impact of large distributions. Traders should prioritize risk controls and monitor liquidation and distribution schedules as potential catalysts for further volatility. COINOTAG will continue to update this story as official data and market movements evolve.