SOL Soars as FTX Executes Major Liquidation - Here’s Why Traders Are Bullish

FTX's massive SOL dump just triggered a market surge instead of a crash—defying every traditional finance playbook.

The Unlikely Rally

Solana's price didn't just hold—it pumped. While bankruptcy estates typically spark selloffs, SOL absorbed the selling pressure like a crypto sponge. Market makers positioned themselves perfectly, turning what should've been a bloodbath into a showcase of institutional demand.

Liquidity vs. Legacy Finance

Traditional markets would've cratered under similar volume. Not crypto. The entire ecosystem handled the move without breaking stride—no exchange halts, no regulatory 'protections,' just pure market mechanics doing their job. Sometimes the most regulated markets are the least efficient.

Forward Momentum

This wasn't just a technical bounce. It signals deeper structural strength in Solana's ecosystem. Developers keep building, users keep transacting, and the network keeps processing—regardless of who's selling what from which bankruptcy estate. The fundamentals override the noise every time.

Maybe Wall Street could learn something about actual price discovery from watching crypto markets handle what should be catastrophic news without needing a government backstop or trading halt.

FTX and Alameda Research recently conducted another withdrawal from Solana$239 (SOL) staking positions. In line with their ongoing asset liquidation strategy amidst bankruptcy, they transferred 192,000 SOL worth $44.9 million last Thursday. This transaction is part of a structured monthly liquidation program managed by the bankruptcy estate.

Details of Solana Liquidations

The blockchain analytics platform EmberCN reported that FTX and Alameda Research have pulled out a total of 8.98 million SOL since November 2023. This amount, at an average price of $134 each, equates to approximately $1.2 billion. According to Solscan, the staking address still holds 4.18 million SOL, with a current market value of about $977 million.

Solana Stake

Despite the liquidation efforts by FTX and Alameda, the Solana market continues to see steady trading volume and price movements. In the last 24 hours, the price of SOL coins increased by 4.3%, reaching $234.27. On a weekly scale, there has been a 14.4% value increase.

Creditor Payments

FTX management is preparing for the next round of creditor payments scheduled for September 30. The company has not yet disclosed the amount to be disbursed in this round. Previously, the bankruptcy estate made payments of $1.2 billion in February and $5 billion in May, totaling $6.2 billion.

The planned distributions to creditors continue to be a significant aspect of the bankruptcy process, along with the liquidation of various cryptocurrencies.