This Week in Crypto: $1.9B Solana Unlock, Aave Debuts on Sonic Layer-1 (L1), and the KernelDAO Token Launch

This week in crypto, several major events are set to capture the attention of industry participants. Among the top stories include a massive Solana unlock, the debut of Aave on Sonic Layer-1 (L1), and the KernelDAO token launch.

This week in crypto is set to be buzzing with several major events that will likely capture the attention of industry participants. Among the top stories to watch out for include a massive Solana unlock, the debut of Aave on Sonic Layer-1 (L1), and the KernelDAO token launch. Each of these events promises significant developments across their respective ecosystems, offering insights and potential growth opportunities that forward-looking traders and investors are likely to capitalize on.

Here's a closer look at each event and what it could mean for the crypto landscape:

1. $1.9 Billion Solana Unlock

This week's key highlight is the unlocking of $1.9 billion worth of Solana (SOL) on March 1. Specifically, roughly 11.2 million SOL tokens will be released, representing about 2.2% of Solana's current circulating supply (around 488 million SOL).

This event is tied to the FTX bankruptcy estate. The tokens stem from FTX's liquidation process, where the bankrupt exchange previously sold locked SOL at discounted rates of around $64 to $102 per token to big players like Galaxy Digital, Pantera Capital, and others.

As of this writing, SOL is trading for around $158.91, so these institutional buyers are sitting on hefty unrealized profits. The unlock happens this Saturday, and the big question is whether they will hold or sell.

A mass sell-off could flood the market, potentially tanking SOL's price due to increased supply outpacing demand. However, the impact might be muted if they hold, especially if Solana's ecosystem keeps growing.

Nevertheless, market sentiment is already jittery, with posts on Reddit showing retail investors selling off SOL in anticipation, fearing a dip.

“While the team’s, seed investors’, and foundation's shares are locked (also about 40%), the release of such a large volume poses a risk of market shock,” a popular account on Reddit stated.

Technicals are not rosy either as Solana buyers retreat. Notwithstanding, SOL fundamentals like its fast, low-cost blockchain and rising adoption could cushion the blow long-term. Similarly, past unlocks, like the 7x supply increase in 2020, actually kicked off a bull run, though the market was less mature then.

2. Aave Debuting on Sonic L1

In December, Sonic Labs indicated the Aave governance process to bring the $22 billion lending market to Sonic. This week in crypto, Aave is going live on Sonic.

This marks a major development, given that Aava dominates the DeFi lending market with $20 billion in total value locked (TVL), according to DefiLlama data. Launching on the L1 would allow Sonic users to tap on-chain native credit lines and offer liquidity to other investors.

Sonic's high transaction speed and fee-sharing model could also prove to be major incentives for Aave's deployment on the network.

“AAVE will be the tangible breakthrough for Sonic that gets it from “small but promising chain” to full-fledged powerhouse. The network effect of AAVE is immense. And on Sonic that effect will be galvanized by the existing landscape,” popular user Jack the Oiler observed.

This partnership will also see a $63 million liquidity commitment, including monetary contributions from various sources. Specifically, the Sonic Foundation pledged $15 million, with an additional $20 million promised in Circles USD Coin (USDC).

The funding would also include up to 50 million S tokens from Sonic, while Aave would contribute $800,000 in stablecoins. This sizable liquidity commitment would secure the financial backbone for Aave's introduction to the Sonic network.

3. Nvidia Earnings

Nvidia's earnings report will also be on the crypto watchlist this week. Nvidia's fiscal fourth quarter (Q4) report, ending January 2025, is to be released this Wednesday, February 26. The report will be out after the market closes, making it a focal point for investors this week.

As the world's top chipmaker by market cap, Nvidia's results are a bellwether for the artificial intelligence boom, meaning impact on AI coins.

“NVDA 1D update-bearish AI news dropping this week…you won’t catch me buying any AI coins when I see the NVDA chart looking that way. I've always felt that way about AI coins bc NVDA has been ready to pop since November. All it took was some fake Deep Seek news for the initial distro and then AI memes did -95% of that,” an analyst shared in a post.

4. KernelDAO Token Launch

Also, this week in crypto, the launch of KernelDAO's KERNEL token is expected. In a recent blog,