Solana News: FTX Continues to Unload SOL, Impacting Market Sentiment

In a move that has further complicated the already volatile cryptocurrency market, FTX has continued to offload significant amounts of Solana (SOL), raising questions about the future of the digital asset. Here’s a closer look at the latest developments surrounding SOL and its market impact.

FTX Offloads Another $22.9M SOL - Impact on Solana’s Recovery Unclear

FTX unstaked and offloaded another $22.9 million worth of SOL to various addresses. In March, SOL has seen outflows totaling about $400M, according to Coinglass data. FTX/Alameda moved 185,345 SOL ($22.9M) to 38 wallets, part of its monthly unloading. The bankrupt exchange still has 5.5 million SOL staked, worth $696M, and has unloaded about $1B of SOL since November 2023. On March 4th, FTX unstaked and offloaded over 3M SOL ($432M), potentially part of the scheduled 11.2M SOL unlock. SOL prices dipped to $125 at the end of February but the impact of the unlock remains to be seen.

Pump.fun Launches DM and Group Messaging Features

Pump.fun, a memecoin launchpad platform and major driver of traffic and liquidity to the Solana blockchain, has announced the launch of its direct messaging (DM) and group messaging features on its mobile apps for iOS and Android devices. This new development comes after the abrupt closure of Pump.fun’s controversial livestreaming feature, which was initially launched in mid-2024 but faced challenges, leading to its rise and fall. The new DM and group messaging features will allow users to send DMs, create group chats, and seamlessly share coins, exclusively on the Pump.fun app.

Solana Inflation Reform Effort Fails

A contentious effort to reform Solana’s high staking rewards and inflation regime failed to garner the necessary supermajority on the final voting day. The proposal, SIMD-0228, aimed to replace the network’s static inflation mechanics with a market-based system, potentially cutting annual staking rewards from 4.7% to 1% or less. The surprise result delivered a blow to Solana power brokers who supported the change, as small-time operators rallied against the proposed big cut to their revenue.

Solana’s SIMD 228 Inflation Cut Proposal Fails, But Network Passes Stress Test

Solana’s SIMD 228 proposal, aiming to cut inflation by 80%, failed to pass after garnering just 43.6% YES votes. Despite this, the network passed a key stress test, and the proposal saw historic voting turnout with 74% of staked SOL participating. SIMD 123, however, did pass. According to Dune Analytics, 27.4% of stakeholders voted against SIMD 228.