Solana (SOL), a prominent smart contract and DeFi ecosystem with a market cap of over $1.5 billion in stablecoin market capitalization and approximately $305 million in total value locked (TVL), has received a lot of attention in light of its substantial liquidation order from the FTX.
Solana’s price is hovering around $18.77 during early market hours in London on Thursday, representing an increase of about 5.3 percent. Speculation about Solana’s price movements has increased in recent hours, with the average 24-hour trading volume increasing by around 43 percent to around $448 million.
Solana FTX deal
Solana’s FTX deal On Wednesday, current officials at FTX, led by CEO John Ray III, received court approval to liquidate the exchange’s crypto holdings as part of an effort to repay creditors. According to FTX filings, the ailing crypto exchange holds about $3.4 billion in digital assets, with Solana making up the majority at about $1.2 billion. In particular, the fact that there is a willing buyer to provide FTX with a secure option to liquidate its Solana holdings represents a positive development for the DeFi ecosystem.
SOL price analysis
SOL Price Action Solana’s price has seen an increase of about 29 percent this year, but has encountered significant resistance and surpassed pre-FTX levels. The closure of FTX and its association with Solana is expected to remove near-term uncertainties and possibly catalyze the second phase of the bear market rally, targeting the next macro resistance zone of $40 to $50. However, for Solana’s bullish momentum to continue, it is imperative that they convert the 50 weekly moving average into a support level.