Ethereum (ETH) and Solana (SOL) Prices Could Plunge as FTX Begins Creditor Repayments on May 30

Ethereum price consolidated within a narrow 2% range between $1,750 and $1,820 in late March, but an upcoming liquidity event could trigger further downside in April 2025.

Ethereum price has remained bid and consolidated within a narrow 2% range between $1,750 and $1,820 in late March. However, an upcoming liquidity event could trigger further downside in April 2025.

As FTX prepares to begin creditor repayments on May 30, traders are turning their attention to the potential market turbulence that could unfold.

Ethereum (ETH) Set to Close March 2025 with 18% Losses

Ethereum price is set to post underwhelming performance in March 2025, underperforming significantly as network upgrade concerns, Trump’s tariff policies, and heightened congressional scrutiny of former SEC Commissioner Paul Atkins come into play.

At press time, ETH is trading at $1,830, indicating an 18% decline from its March 1 opening price of $2,237. In contrast, Bitcoin (BTC) has remained relatively stable, losing less than 2% for the month as it trades above $83,400 after opening March at $84,400.

The stark divergence in performance highlights Ethereum’s exposure to additional bearish catalysts beyond broader macroeconomic risks.

FTX Payouts from May 30 Could Drain $800 Million in Ethereum and Solana Liquidity

Ethereum’s underperformance relative to Bitcoin signals the influence of asset-specific headwinds.

One major catalyst is the impending FTX repayments, set to commence on May 30. Over the past few months, the bankrupt exchange has systematically moved assets into exchange wallets, preparing for liquidation.

On-chain data from Arkham Intelligence reveals that FTX holds over $800 million in assets hosted on the Ethereum and Solana blockchains.

As seen in the chart above, 61% of these holdings are Solana-based assets, while 39% are Ethereum-based.

Since FTX’s collapse in November 2022, Solana, Bitcoin, Ethereum, and XRP have surged in value, with SOL leading the gains at approximately 650%.

However, court filings confirm that FTX repayments will be made in USD, necessitating asset liquidations to generate cash.

The anticipation of this forced selling has already placed downward pressure on ETH and SOL prices, with further declines expected in April 2025.

FTX will begin repaying major creditors on May 30 from its $11.4 billion reserve, with some payouts reaching up to 118% per claim.

However, the repayments are based on crypto prices at the time of FTX’s bankruptcy, disregarding the significant gains these assets have made since late 2022. To compensate for the time delay, creditors will receive an additional 9% annual interest on their claims.

Ethereum and Solana Could Underperform in April 2025

Given the upcoming FTX liquidation event, Solana and Ethereum price forecast signals could continue lean bearish and underperform relative to Bitcoin and other major assets.

The market has already priced in expectations of substantial sell pressure, and further downside remains likely if liquidation volumes exceed current projections. Unless new demand offsets these sales, ETH and SOL could see a challenging start to Q2 2025.

Frequently Asked Questions (FAQs)

1. What is causing Ethereum’s price decline in March 2025?

Ethereum price has underperformed relative to Bitcoin, signaling the presence of asset-specific sell-side pressure.

This weakness can be attributed to several factors, including:

* Network upgrade concerns: The community is still debating the introduction of EIP-4844, which could reduce gas fees but also encountered strong opposition from BitMEX Research analysts.

* Trump’s tariff policies: A report by The Block highlights how Trump’s tariffs on China are affecting cryptocurrency prices.

* Heightened congressional scrutiny of former SEC Commissioner Paul Atkins is also a factor contributing to market volatility.

2. How will FTX’s repayments impact Ethereum and Solana?

FTX is set to begin paying back creditors on May 30, beginning with major claims. These payouts will be based on crypto prices at the time of FTX’s bankruptcy, despite the significant gains these assets have made since late 2022.

To compensate for the time delay, creditors will receive an additional 9% annual interest on their claims.

3. Can Ethereum recover after the FTX sell-off?

The prospect of FTX offloading $800 million in Ethereum and Solana to make creditor repayments signals potential turbulence for the crypto market in April 2025.

As FTX prepares to begin paying back creditors on May 3