Alameda Unstakes $23M SOL, Sparking Price Fears Amid Market Volatility

An address linked to Alameda Research has recently unstaked approximately $23 million worth of SOL, a development that has raised concerns about the potential impact on the Solana price. This significant unstaking of SOL tokens could lead to an increase in the circulating supply, which may exert downward pressure on the price of SOL. The unstaking of such a large amount of SOL by a major player in the crypto market has sparked fears of a potential sell-off, which could drive the price of Solana to new lows.

The staking rate of Solana, which was at 64.9% as of February 10, 2025, plays a crucial role in the network's inflation dynamics. Staking involves locking up tokens to support the network's operations and, in return, stakers earn rewards. A high staking rate helps to reduce the circulating supply of tokens, which can mitigate inflationary pressures. However, the recent unstaking of a substantial amount of SOL by Alameda could lead to an increase in the circulating supply, potentially increasing inflation rates and diluting the value of non-staked SOL tokens.

The unstaking of SOL by Alameda comes at a time when the broader crypto market is facing uncertainty and volatility. The market has seen significant liquidations and losses, with major cryptocurrencies like Bitcoin leading the way. The economic policies of certain political figures have also contributed to market fears, further exacerbating the volatility. In this context, the unstaking of a large amount of SOL by a major player like Alameda could have a significant impact on the Solana price, potentially driving it to new lows.

The recent unstaking of SOL by Alameda highlights the interconnected nature of the crypto market and the potential impact of major players' actions on the broader market. The move by Alameda to unstake a significant amount of SOL could have far-reaching consequences, not just for the Solana price but also for the broader crypto market. As the market continues to navigate through uncertainty and volatility, it remains to be seen how the unstaking of SOL by Alameda will play out and what the long-term implications will be for the Solana price and the broader crypto market.

Onchain indicators suggest that Solana is approaching a death cross for the third time in its history. The death cross is a bearish signal, occurring when the 50-day moving average crosses below the 200-day moving average. Achieving a death cross could send Solana price to new lows with previous occurrences proving extremely bearish. The first death cross in 2022 saw prices fall by over 90%, exacerbated by FTX’s implosion. The second death cross in 2022 saw prices take a nose dive before staging a recovery during the “Trump pump.” Experts say projections for SOL to reach $200 are unlikely as it trades at a six-month low.

At the moment, Solana price is trading at $126.53 down by nearly 15% over the last week. For now, traders are proceeding with caution with the biggest indicator being a steep drop in daily trading volume. Despite the grim numbers, experts say Solana will outperform Ethereum, citing the network’s impressive functionalities.