Peter Smith
Solana (SOL) plunged below $160, hitting its lowest level of 2025, as investors brace for the upcoming FTX unlocking event. The asset has lost 35% in the past month amid concerns over liquidity and market stability.
SOL Struggles to Hold $160 Amid Market Uncertainty
Solana (SOL) experienced a sharp decline on Feb. 24, dropping over 7% to $158.46—its lowest price this year. The last time SOL dipped below $160 was on Oct. 20, 2024, when it closed at $159.64. At press time, SOL remains unable to reclaim the $160 level, currently trading around $159.29.
Over the past 24 hours, SOL has fallen by 6.9%, extending its weekly losses to nearly 13%. The asset has seen a significant downturn in the past month, losing more than 35% of its value in 30 days.
SOL Market Cap and DEX Volume Take a Hit
Solana’s market capitalization now stands at $78 billion, with a fully diluted valuation of $95 billion. This marks a substantial decline, as SOL briefly rebounded past $180 days ago.
According to DeFi Llama, Solana’s decentralized exchange (DEX) trading volume has also taken a hit, plummeting by 36.7% in the past week. As of now, SOL’s weekly DEX volume is $16.6 billion, while daily trading volume has dropped to $1.5 billion.
Since Feb. 24, SOL has shed nearly $10 billion in market cap and an equivalent amount in fully diluted valuation, reflecting growing investor concerns.
FTX Unlocking: The Key Catalyst Behind SOL’s Decline
One of the primary factors driving SOL’s decline is the upcoming FTX unlocking event on March 1. The bankrupt exchange is set to release 11.2 million SOL tokens—worth approximately $1.77 billion—into the market. This massive influx of supply has raised fears of increased selling pressure, leading investors to brace for potential volatility.
While some traders anticipate further downside, others see the drop as a buying opportunity. If demand remains strong, SOL could stabilize and stage a potential recovery.
SOL Derivatives Market Sees Surge in Put Options
Amid the price drop, Solana’s derivatives market has witnessed significant activity. According to Amberdata, last week’s SOL block trades on the Deribit exchange accounted for nearly 25% of all Solana options trading, totaling $32.39 million out of $130.74 million.
This marks the second-largest block trade portion ever recorded for SOL, with nearly 80% of transactions concentrated in put options—derivative contracts that allow traders to hedge against potential downside.
During market declines, whale investors often turn to put options rather than direct sell orders to minimize impact and protect against volatility. This surge in derivative activity suggests that institutional traders are positioning for potential further downside in SOL.
Conclusion
With the FTX unlocking event just days away, SOL remains at a critical juncture. If selling pressure intensifies, the asset could face further declines. However, if investors step in to accumulate at lower levels, SOL may find support and regain lost ground.
For now, all eyes remain on March 1, as the market braces for the impact of the FTX token release.
Peter Smith
