Solana (SOL) Options Market Turns Bearish as $2B Token Unlock Approaches

After the $1.4 billion Ethereum exploit at Bybit, the focus has shifted to Solana (SOL) as bearish sentiment intensifies.

A recent $1.4 billion Ethereum exploit on Bybit has brought attention to the upcoming Solana (SOL) token unlock, amidst bearish sentiment in the crypto markets.

Bybit CEO Ben Zhou confirmed that the exchange has fully recovered the stolen funds. However, concerns are rising regarding Solana's prospects as the clock ticks down to a major token unlock.

Whales are making significant moves on Deribit, with a large portion of the options market now centered around put contracts for SOL.

According to data, about 80% of the SOL options trading volume consists of puts, significantly higher than the 40% and 37.5% observed in Bitcoin (BTC) and Ethereum (ETH) respectively during the same period.

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This surge in bearish activity coincides with a slowdown in on-chain Solana activity and the approaching release of over $2 billion in SOL tokens on March 1.

The upcoming unlock of 11.2 million SOL, which represents nearly 2.3% of the total supply, is largely tied to assets from the collapsed FTX exchange and a foundation sale.

With nearly 60% of Solana's daily spot trading volume potentially impacted, the market is bracing for volatility. While some investors are hedging their positions with puts, others are eyeing the price fluctuations as an opportunity to make profitable trades.

The unfolding events will be crucial in determining Solana's immediate price direction.