Solana (SOL) has taken a nosedive as whale movements mount to centralized crypto exchanges. The wider market drop led to negative sentiments from several categories of traders. Solana remains key for an altcoin season after hitting levels above Ethereum in institutional flows.
At press time, losses continue to accumulate for the community-dubbed ETH killer. SOL traded at $240, plunging 0.28% in the last 24 hours, bringing weekly losses to similar figures. Crypto assets retracing amid bullish markets come with high volatility.
Solana Whale Dumps Asset
Data from Lookonchain shows a Solana whale depositing 44,950 SOL worth approximately $10.5 million on Binance. The assets were withdrawn from staking to the centralized exchange, likely to prevent losses. Crypto movement to centralized exchanges usually indicates a sale due to the ease of transfers. On the other hand, transfers off exchanges to other custodians indicate long-term holdings.
Another factor that affected Solana outflows in terms of whale address activity was Pump.fun’s transfer of 99,999 SOL worth about 22.7 million to Kraken. The transfer raised lots of eyebrows, and some users suggested a sale. Lookonchain previously wrote on X (formerly Twitter), calling it a sale before stating it was only a deposit.
Pump.fun has gained traction since its launch as the community embraces the meme coin launch pad. Meme coins grew this quarter, with multiple tokens picking up double-digit wins before the price correction.
Can Solana Change the Tide?
Solana bulls are optimistic about an upward swing in prices. While bulls have locked in more positive targets, bears opine that recent setbacks could wipe out huge gains. However, on-chain factors tip a bullish scenario for the asset as the network fee drops. Crypto user Peter Horton explained the bullish scenario of the asset.
“Solana’s chain gdp reached a new ath in october, both in absolute terms ($300M) and in market share (45%). chain gdp takes the sum of all fees collected by projects on a network. in october, solana projects collected more fees than projects on Ethereum and its L2s combined.”
