Solana’s native cryptocurrency, SOL, is showing signs of recovery despite the negative sentiment in the broader cryptocurrency market. SOL’s value is trading higher than major cryptocurrencies Bitcoin $58,156 and Ethereum 
$2,360 is struggling, up nearly 3%. SOL is currently trading at around $135, according to CoinMarketCap data.
FTX and Solana Relationship
The surge has been attributed to the actions of the collapsed crypto exchange FTX and its affiliate Alameda Research. A wallet affiliated with FTX and Alameda unloaded approximately $23 million worth of SOL tokens from Solana’s PoS network, reigniting speculation that crypto assets could be moving to centralized exchanges.
In November 2023, the same wallet unwrapped $67 million worth of SOL and transferred it to Coinbase. Due to its close relationship with Solana after the collapse of FTX, the value of SOL dropped to $8.
Legal Investigations
Since FTX’s collapse, the company has gradually shed its Solana assets. The latest wind-down comes at a time when FTX executives are under federal investigation. Caroline Ellison, former CEO of Alameda Research, is set to be sentenced on September 24 for her role in the company’s collapse.
Ellison’s lawyer has filed a motion in court to have personal and medical information removed from the final plea documents, while Michelle Bond, the partner of FTX executive Ryan Salame, is also reportedly facing charges.
These developments continue to have an impact on Solana’s market dynamics. The impact of FTX on Solana is being closely monitored in the cryptocurrency market. Such market movements are seen to create opportunities and risks for investors.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
