Solana (SOL) Nears Its Unlock Event on March 1, Releasing 11.2M Tokens Worth $2.07B

Notably, this comes to 2.29% of the total supply; a sizable cliff unlock. As the cryptocurrency market reacts to this event, traders anticipate increased volatility through mid-March.

Solana (SOL) is preparing for a significant token unlock event in early March, with a total of 11.2 million SOL tokens set to be released. This large-scale unlock has garnered attention within the crypto community, sparking discussions on its potential impact.

According to on-chain data, the upcoming unlock event includes tokens from the FTX Estate and a separate foundation sale. The specific breakdown of the attribution for this unlock is not available.

Despite being a sizable amount, this unlock only comprises 0.01% of Solana’s total market capitalization, which currently stands at $90.45 billion. However, it is important to note that the unlock size is nearly 59% of the daily spot trading volume, which could potentially put pressure on the market supply.

In anticipation of this event, traders have been shorting SOL to prepare for the upcoming price fluctuations. The funding rates for SOL perpetual contracts on major exchanges have turned negative, indicating bearish sentiment and traders betting on a price decrease.

Solana’s price has also lagged behind Bitcoin’s performance, remaining far below its all-time high. This divergence has created a disparity in the market cycle for SOL, which traders may consider when navigating the upcoming volatility.

As we approach the early March unlock event, it is evident that traders are preparing for the potential market impact. With solana price lagging behind bitcoin and a smaller unlock on the horizon, those looking to navigate this price action may want to adjust their strategies accordingly.ऎ