Solana Price Faces Intense Selling Pressure! Will SOL Drop Further?

• Over the past weekend, Solana (SOL) price faced significant selling pressure, causing it to drop below $18.50 in a recent downturn.
• Crypto exchange FTX held Solana as a significant part of its reserves. However, the exchange sold large amounts of SOL when it collapsed in November 2022.
• It seems many have overlooked a crucial detail. There is a significant misconception that SOL tokens held by FTX borrowers are readily available for sale.

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Solana’s price has been under pressure due to the possibility that FTX could receive approval for the liquidation of assets, which has led to a significant sell-off in the coin. Should Solana investors be concerned?

Solana Prices Under Pressure

Over the past weekend, Solana (SOL) price faced significant selling pressure, causing it to drop below $18.50 recently. This occurred because Solana investors were concerned that crypto investors might be able to sell their Solana assets following the FTX hearing in Delaware Bankruptcy Court on Wednesday, September 13.

Reports suggest that FTX is seeking approval for the liquidation of $3.4 billion worth of SOL, FTT, BTC, ETH, and other crypto assets. Crypto exchange FTX held Solana as a significant part of its reserves. However, the exchange sold large amounts of SOL when it collapsed in November 2022.

Solana’s share in FTX’s total crypto assets is substantial. As of January 17, FTX’s crypto assets included approximately $685 million worth of Solana (SOL) tokens, $529 million worth of FTT tokens, $268 million worth of Bitcoin (BTC), $90 million worth of Ethereum (ETH), along with various other assets, including Aptos, Dogecoin, Polygon, XRP, and various stablecoins.

These tokens are not immediately tradable

It seems that many have overlooked a crucial detail. There is a significant misconception that SOL tokens held by FTX borrowers are readily available for sale. Contrary to the impression conveyed by commonly shared visual data, these SOL tokens are subject to a vesting agreement. FTX had obtained 16% of the SOL supply directly from the Solana Foundation in partnership with Alameda.

This acquisition came with specific conditions, primarily a vesting program. The current locked amount of 47.51 million SOL represents 8.82% of Solana’s ultimate total supply as dictated by this agreement.

As such, the misconception that this SOL reserve is immediately tradable and ready for a market sell-off is fundamentally incorrect. In reality, these tokens are locked and will follow a linear release process spanning from 2025 to 2028.

Per the terms of the agreement, SOL tokens will experience a gradual release on a monthly basis until January 2028. Additionally, specific tranches, like the 7.5 million SOL purchased by Alameda Research from Solana Labs, will only become accessible on March 1, 2025. Another tranche of 61,853 SOL will be ready for unlocking on May 17, 2025.

Therefore, amidst all the FUD (Fear, Uncertainty, and Doubt) surrounding Solana, there seems to be little reason for investors to worry.