Wintermute Withdraws $38M in Solana as $2B Token Unlock Approaches

• Wintermute withdrew $38.2M in Solana from Binance ahead of a $2B token unlock.
• Over 11.2M SOL tokens will enter circulation on March 1, raising sell-off concerns.
• Binance’s $15.6M SOL sell-off triggered a 6% price drop, pushing SOL below $160.

Before a major token unlock, the crypto market maker Wintermute transferred $38.2 million worth of Solana (SOL) tokens from the Binance. Wintermute executed its SOL withdrawal shortly before the scheduled release of 11.2 million SOL tokens. The SOL tokens have a market value of approximately $2 billion. 

The $38.2 million Solana tokens were withdrawn from Binance during the 24-hour period before February 24 based on Arkham Intelligence records. The large Solana token sales from the Binance exchange concerned market participants about potential additional selling pressure from the token unlock event. The unlocking of Solana follows the events surrounding FTX’s bankruptcy, which led to SOL’s token liquidation.

Source: Arkham Intelligence

Analysts warn about the large number of tokens entering circulation because many were acquired at below-market prices during FTX’s token auctions. Market stability concerns became apparent after the unlocking because analysts predicted fast selling behavior among the unlocked tokens.

Market Sentiment and Selling Pressure Ahead of the Unlock

Uncertainty on the March 1 release of more than 11 million SOL tokens into circulation has intensified anxiety throughout the Solana market. FTX sold tokens in their liquidation sale at $64 per SOL during this period before SOL grew to its current market price of $155. Token holders expect significant profit gains 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. The upcoming unlock and a broader market downturn make it uncertain whether Solana’s price will hold its current levels or decline further.

Binance’s Role in Solana’s Price Decline

After Binance executed a large-scale token sale through Wintermute, the Solana market looks less certain. Binance sold approximately 100,000 SOL tokens worth $15.6 million, decreasing token value. Before February 24 ended, Solana lost more than 6% of its value and dropped below $160 in only a few hours. The substantial price decrease becomes important considering the ongoing negative market movement in crypto sectors, which lowers values for major assets.

Data from Coinglass also revealed that Solana’s inflows to exchanges have been in the negative range since mid-February, with more assets leaving the network than entering. The continued selling pressure has left market participants uncertain about the immediate future of SOL’s price, especially with the impending token unlock. If Solana’s price fails to maintain critical support levels, analysts predict it could face a further decline, potentially even testing lower levels such as $100.