Why did Solana go up today? Crypto market weathers FTX contagion (Cryptocurrency:SOL-USD) – Seeking Alpha
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Solana (SOL-USD) tokens soared 42.3% in Thursday afternoon trading as most major cryptocurrencies, including bitcoin (BTC-USD) +14% and ethereum (ETH-USD) +20.3%, pared a solid chunk of this week’s losses following softer inflation figures for October.
The upswings throughout the cryptoverse came even as Sam Bankman-Fried’s imploding FTX crypto exchange continues to steal the spotlight. Following an abrupt liquidity crunch, FTX has been on a capital-raising spree, only to be denied by rival Binance in what was a short-lived non-binding bailout agreement. Since then, FTX has reportedly held talks with a number of investors for raising $9.4B to rescue the once-mighty firm.
It’s important to note that Solana (SOL-USD) has deep ties with SBF’s crumbling crypto empire, as a big portion its coin supply was said to have been controlled by FTX as well as its sister company Alameda Research, a trading firm of which its finances were recently brought into question.
The Wall Street Journal reported earlier that FTX loaned out billions of dollars worth of customer funds to back risky wagers by Alameda.
Despite Solana’s (SOL-USD) monster move to the upside Thursday, it remains some 47% lower in the past five sessions and -90% year-to-date, in a similar downward spiral seen among the major names.
Solana’s (SOL-USD) wild price action in the past few days also comes as over 31M tokens, accounting for ~5.4% of total supply, were unstaked from the blockchain’s security mechanism. Solana Foundation, which supports the development of the blockchain, said Thursday that it opted not to stake 28.5M tokens overnight, in a move that could have increased supply thus push SOL price down, according to a release.
On Wednesday, Crypto.com paused deposits and withdrawals of Solana ecosystem stablecoins USDC (USDC-USD) and USDT (USDT-USD).