Data shows around $22.1 million in SOL has been deposited into the Coinbase exchange, a sign that may be bearish for the value of Solana.
Solana Whale Transfers $22.1 Million In SOL To Coinbase
According to data from the cryptocurrency transaction tracker service Whale Alert, a large transaction has been spotted on the Solana blockchain during the past day.
The transfer in question saw the movement of about 900,000 SOL on the network, worth about $22.1 million at the time the transaction went through. As the amount involved here is quite large, it’s likely that a whale entity was behind this transfer.
Movements of the whales can sometimes have noticeable impacts on the market due to the sheer scale of the coins involved in them, so they can be something to watch out for.
As for exactly how a whale transfer would influence the price of the cryptocurrency, though, it depends on what the sender of the transaction intended to do with it.
Here are some additional details of the latest Solana whale transfer that may shed some light on the purpose behind it:
Looks like this massive transfer only needed a fee of 0.000019 SOL to be possible | Source: Whale Alert
As you can see above, the sending address in the case of this Solana transaction was an unknown wallet, meaning that it was an address unaffiliated with any known centralized platform (like an exchange). Such unknown wallets are generally investors’ personal wallets.
The receiving address, on the other hand, was one attached to the cryptocurrency exchange Coinbase. Transfers like these where coins move from personal wallets to exchange wallets are called exchange inflows.
Since one of the main reasons why investors may deposit their assets to these platforms is for selling-related purposes, exchange inflows can have bearish consequences for the price.
In the present case, as the transaction is coming from a whale and involves a significant movement of tokens to an exchange, the price may face some visible decline in the near term.
The cryptocurrency’s price has in fact already gone down a bit since the transaction has taken place, but it’s currently unclear whether the drawdown has come as a result of this transfer or not.
Sometimes, investors deposit their coins to exchanges only so that they can be prepared in advance if an ideal future exit opportunity comes up and thus, don’t immediately pull the trigger on selling them right after the transaction goes through. In such cases, the bearish effect, if any, naturally comes after a delay.
It’s also yet uncertain whether the whale truly intended to sell with this transfer, or if it was made for some other purpose entirely. In the latter scenario, the price would feel a neutral effect from this move.
At the time of writing, Solana is trading around $24.4, up 19% in the last week.
SOL seems to have slid down during the past day | Source: SOLUSD on TradingView
Featured image from GuerrillaBuzz on Unsplash.com, chart from TradingView.com