Wintermute Transferred $38.2M Worth of Solana (SOL) Tokens from Binance Before a Major Token Unlock

The crypto market maker Wintermute transferred $38.2 million worth of Solana (SOL) tokens from the Binance exchange.

Crypto market maker Wintermute moved $38.2 million worth of Solana (SOL) tokens from Binance, as per data, ahead of a major token unlock event.

The large Solana token sales from Binance had market participants concerned about potential additional selling pressure from the token unlock event.

According to Arkham Intelligence records, the $38.2 million Solana tokens were withdrawn from Binance during the 24-hour period before February 24. The large-scale token sales were executed by the market maker shortly before the scheduled release of 11.2 million SOL tokens. The SOL tokens have a market value of approximately $2 billion.

The large number of tokens entering circulation is of concern to analysts because many were acquired at below-market prices during FTX’s token auctions. This has led analysts to predict fast selling behavior among the unlocked tokens, which could put further downward pressure on the already struggling cryptocurrency.

An analysis of on-chain data by Arkham Intelligence shows that a large portion of the tokens being unlocked were acquired by several major market participants at prices ranging from $64 to $79 per SOL. However, the token is currently trading at around $155.

“FTX sold these tokens in their liquidation sale at $64 per SOL during this period. This is before SOL grew to its current market price of $155. Token holders stand to make a significant profit when their tokens become unlocked, leading experts to believe they will sell their assets right after unlocking.”

According to crypto analyst Artchick.eth, more than 15 million SOL tokens will be distributed during the next three months, resulting in probable substantial price depreciation for the cryptocurrency. Notable firms such as Galaxy Digital, Pantera Capital, and Figure stand to profit from these token releases, which could further contribute to the selling trend.

“3 months left until Galaxy Digital, Pantera Capital, and Figure are legally allowed to dump their bags on you. (Galaxy got 3.4m, Pantera got 1.3m, Figure got 1m) Together, that’s 5.7m SOL tokens, acquired for less than $300m at FTX’s token auctions, now valued at over $900m.”

The large Solana token sales come as Binance is also facing scrutiny for its role in the steep price decline of SOL. A crypto analyst has highlighted on-chain data showing that Binance sold around 100,000 SOL tokens, valued at $15.6 million, through Wintermute before February 24.

“Binance sold roughly 100k $SOL tokens (15.6m) through the market maker, as the MM’s balance decreased while Binance’s increased. SOL lost more than 6% of its value in only a few hours, dropping below $160 based on the on-chain data. The large price decrease becomes more significant considering the broader market movement, which sees most assets losing value.”

Data from Coinglass also shows that Solana’s inflows to exchanges have been in the negative range since mid-February, indicating that more assets are leaving the network than entering. This could further contribute to the selling pressure on SOL.

“Solana has seen a continuous net outflow from exchanges for the past 2 to 3 weeks. More assets are leaving the network than entering, as the exchange outflows began around February 14 and have continued since.”

If Solana’s price fails to maintain critical support levels, such as $125, analysts predict it could face a further decline, potentially even testing lower levels like $100.