Crypto Whale Deposits $2.83M in SOL into CEX After Staking Losses

A major whale redeposited approximately 20,466 SOL (~$2.83M) into Kraken on January 19, according to monitoring from Lookonchain. The whale had previously withdrawn 20,000 SOL from the exchange in June 2025 and staked it, earning 466 staking rewards. However, the overall value of their holdings dropped sharply due to Solana's price depreciation.

The redeposit occurred after the whale's stake and rewards depreciated from a combined value of ~$4.1M to ~$2.83M, resulting in a $1.27M paper loss. This move suggests the whale is reevaluating their Solana exposure in a bearish market. Depositing back into a centralized exchange may indicate a strategy to hedge against further price swings or to facilitate potential trading activity.

The whale's action highlights the growing risks associated with staking in a volatile crypto environment. While staking can offer steady returns, it also exposes investors to potential losses if the underlying asset's price declines over the staking period.

Why Did This Happen?

The whale's decision to redeposit staked SOL into Kraken follows a broader trend of investors reevaluating staking strategies amid falling crypto prices. Staking is no longer seen as a guaranteed way to generate passive income if the value of the underlying asset erodes. The whale's move also aligns with cautious investor behavior in a down market, where locking up assets in less liquid positions could be seen as a risk.

Market analysts have noted that the whale's actions may reflect broader uncertainty about the future of staking as a reliable yield strategy. This is especially true for high-profile holders who are more exposed to large swings in asset values.

What Are Analysts Watching Next?

Analysts are now watching to see if this whale's move signals a broader shift in market sentiment among large crypto holders. If more whales opt to reduce staking exposure and move assets back into centralized exchanges, it could indicate a lack of confidence in long-term price recovery for Solana.

Investors are also looking at broader crypto market dynamics, including regulatory developments and macroeconomic trends that could impact asset prices. Staking strategies are being reassessed across the board, as investors seek more flexible and liquid alternatives.

The whale's redeposit into Kraken may serve as a case study for how large holders respond to price declines in their staked portfolios. Market watchers are particularly interested in whether this whale will engage in trading activity or simply keep the assets in the exchange for future moves.