The Solana Blockchain experience FTX tremors as nearly $800M in SOL Tokens are ready to be staked

As Sam Bankman-Fried’s FTX crypto exchange and Alameda Research trading firm come down, the market for SOL tokens on the Solana blockchain is shaking – so much so that some investors have demanded back tokens they had “staked” or deposited into the security protocol of the blockchain.

Crypto market analysts speculated earlier this week that Alameda might need to sell some of its SOL tokens to raise liquidity when concerns over the two businesses’ finances began to grow. Fear sent the SOL price tumbling as traders rushed to sell ahead of the selling pressure.

A new dynamic has emerged: Solana validators who provide security to the blockchain are about to unlock nearly $800 million worth of their SOL holdings within 13 hours as the “Epoch 370” period comes to an end.

According to analysts, investors might dump these soon-to-be unlocked SOL tokens as soon as they recover them. SOL’s price recently plunged 42% to less than $14 in the past 24 hours.

“The decrease in SOL stakes may indicate that investors are considering selling all or part of their position,” FundStrat’s Sean Farrell wrote in a note issued after the bailout announcement on Tuesday evening. “Given these considerations, we believe it is prudent to limit our exposure to Solana (SOL) in the short term.” According to Solana Compass’ blockchain data, approximately 55 million SOL tokens worth approximately $776 million are scheduled to be unlocked.  SOL tokens are staked on the blockchain in about 76% of cases. In a single unlock, scheduled unlocked tokens to represent approximately 15% of the token’s circulating supply.

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