Major whales in the cryptocurrency market have started unloading their Solana (SOL) holdings, raising increasing concerns within the market.
This increase in selling activity comes amid Solana's disappointing performance, as the altcoin continues to lag behind the broader cryptocurrency market.
Solana's price is suffering as whales sell millions of SOL.
In a recent post on X (formerly Twitter), blockchain analytics firm LookOnChain reported that three whale wallets transferred over 226,000 SOL to exchanges in recent hours. The unloading of approximately $40 million indicates a potential profit-taking or a strategy change among large investors.
LookOnChain highlighted that CMJiHu deposited 96,996 SOL worth approximately $17.45 million to exchanges. In addition, 5PjMxa deposited 91,890 SOL valued at nearly $15.98 million to Kraken. Finally, HiN7sS transferred 37,658 SOL worth $6.73 million to Binance, realizing a profit of $1.63 million.
The selling pattern is not new. Over the weekend, Galaxy Digital transferred 224,000 SOL worth $41.12 million to Binance and Coinbase. Additionally, BeInCrypto reported last week that the digital asset financial services company unwound 250,000 SOL, worth around $40.7 million.
The company then transferred it to Binance. Similarly, another whale is unwinding large portions of its Solana holdings. The selling pressure coincides with a lack of enthusiasm among investors, as evidenced by the performance of the REX Osprey Solana ETF.
According to data from Farside Investors, the fund recorded zero net trades for most trading sessions in August, with only one day of positive inflow.
At the same time, SOL's price performance has been weak. BeInCrypto Markets data revealed that the altcoin has struggled to approach its all-time high, remaining 40% below its peak (ATH).
In contrast, other cryptocurrencies like ETH have seen significant gains, with recent bullish trends pushing its price to levels not seen since 2021. Moreover, SOL has declined by 5.49% over the past day. At the time of publication, it was trading at $175.64.
Positive shifts for Solana as whales continue to offload.
However, not everything is bad for Solana. Some positive developments have emerged. For example, OSL HK, a regulated digital currency exchange, announced that it will offer Solana trading to individual investors.
The announcement stated: "We are pleased to announce that OSL HK will become the first exchange in Hong Kong to support Solana (SOL) trading for individuals."
Additionally, Jeff Bezos's Blue Origin has begun accepting SOL, along with Bitcoin (BTC), Ethereum, Tether (USDT), and USDC (USDC) for spaceflight bookings, indicating increasing mainstream adoption.
Alex Wilson, Head of Digital Currency at Shift4, stated: "Digital currencies are now an asset class worth $4 trillion, and the sky is the limit when it comes to their potential in the current payment system. We believe that digital currencies and stablecoins will become an increasingly popular way for consumers to pay, especially for luxury purchases, where both the consumer and the merchant benefit financially from these transactions."
The Solana ecosystem also achieved a milestone with its meme token graduation rate surpassing 3%, reflecting increased activity.
While these developments show promise for broader Solana adoption, the ongoing sell-offs by whales highlight the uncertainty surrounding the asset. It remains to be seen whether whales will continue to offload their holdings or change their strategies, which would impact the future trajectory of the token.