{"id":125382,"date":"2025-03-19T11:18:51","date_gmt":"2025-03-19T11:18:51","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125382"},"modified":"2025-03-19T11:18:51","modified_gmt":"2025-03-19T11:18:51","slug":"solana-stablecoin-positioning-threatens-extreme-sol-volatility","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125382","title":{"rendered":"Solana stablecoin positioning threatens \u2018extreme\u2019 SOL volatility"},"content":{"rendered":"

Source: Cointelegraph.com NewsInvestors\u2019 stablecoin positioning on the Solana network and a key technical chart pattern threaten more volatility for the Solana token, which may see a decisive moment for its price action.
\nSolana\u2019s transport layer saw \u201cextreme\u201d volatility in trading the Tether\u2019s USDt (USDT) stablecoin, which may indicate that traders are repositioning in search of new investment opportunities.
\nUSDT trading on Solana\u2019s transport layer saw an over 137% surge during the last week of February, after seeing a 61% plunge during the previous week, according to a report by global payments infrastructure platform Mercuryo, shared with Cointelegraph.
\nThe stablecoin trading spikes show an unparalleled level of trading activity that may signal more volatility for the Solana (SOL) token, according to Petr Kozyakov, co-founder and CEO of Mercuryo.
\nThe \u201cfrenetic activity\u201d may \u201cindicate that the chain is prone to be more volatile,\u201d the CEO told Cointelegraph, adding:
\n\u201cHowever, Solana\u2019s inherent strengths \u2013 fast transaction processing, high scalability, and an active trading ecosystem \u2013 may also be factors. This is against a backdrop of an ecosystem attracting at times high trading volumes.\u201d
\n\u201cNotably, DEX\u2019s on Solana, such as Jupiter and Raydium, have ignited significant interest,\u201d he added.
\nRelated: Crypto market\u2019s biggest risks in 2025: US recession, circular crypto economy
\nMeanwhile, a key emerging technical chart pattern may be decisive for Solana\u2019s price action in the near term.
\nSource: Trader Tardigrade\u201cSolana Heikin Ashi hourly chart shows a Converging Triangle. Both bullish or bearish moves are possible,\u201d wrote pseudonymous crypto analyst Trader Tardigrade in a March 19 X post.
\nRelated: Bitcoin beats global assets post-Trump election, despite BTC correction
\nMemecoins, FTX repayments may be limiting SOL price
\nWhile some analysts suggest that the current memecoin frenzy has been siphoning liquidity from the Solana token, multiple other factors are influencing SOL\u2019s price action.
\nNotably, the incoming repayments from bankrupt FTX exchange may limit Solana\u2019s price action, explained Kozyakov, adding:
\n\u201cThe defunct FTX exchange has set up a repayment plan that involves distributing a large amount of SOL tokens to creditors, which can potentially result in selling pressure.\u201d
\nFTX and Alameda Research-linked wallets unstaked $431 million of SOL tokens on March 4, marking the biggest SOL token unlock since November 2023, Cointelegraph reported.
\nAlthough FTX and Alameda unlocked more than $400 million in SOL, the firms may not be able to sell all the tokens in a single transaction. In September 2023, the Delaware Bankruptcy Court approved FTX\u2019s plan to sell digital assets, imposing strict limits on liquidation amounts.
\nUnder the court ruling, the bankrupt exchange can sell digital assets weekly through an investment adviser, with an initial limit of $50 million in the first week and $100 million in subsequent weeks. If FTX seeks to sell more, it must request court approval to raise the limit to $200 million per week.
\nFTX\u2019s next round of repayments will take place on May 30. Under FTX\u2019s recovery plan, 98% of creditors are expected to receive at least 118% of their claim value in cash. In May 2024, the exchange estimated the distribution\u2019s total value to range between $14.5 billion and $16.3 billion.
\nMagazine: ETH may bottom at $1.6K, SEC delays multiple crypto ETFs, and more: Hodler\u2019s Digest, March 9 \u2013 15Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsInvestors\u2019 stablecoin positioning on the Solana network and a key technical chart pattern threaten more volatility for the Solana token, which may see a decisive moment for its… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125382"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125382"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125382\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125382"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}