Solana Price Drop Triggers Whale Move Towards Centralized Exchanges ⋆ ZyCrypto

Solana (SOL) has taken a nosedive as whale movements to centralized crypto exchanges increase. The overall market decline resulted in negative sentiment across several categories of traders. Solana remains key to an altcoin season after reaching levels above Ethereum in institutional inflows.

At press time, losses continue to pile up for the ETH killer dubbed by the community. Trading at $240, SOL is down 0.28% in the last 24 hours, taking weekly losses to similar levels. The decline of crypto assets amid bullish markets is associated with high volatility.

Solana Whale Dumps Asset

Data from Lookonchain shows that a Solana whale has deposited 44,950 SOL, worth about $10.5 million, on Binance. The assets were withdrawn from the central exchange to prevent losses. The movement of cryptocurrencies to centralized exchanges usually indicates a sale due to the ease of transfer. On the other hand, transfers from exchanges to other custodians indicate long-term involvement.

Another factor that influenced Solana outflows in relation to whale address activity was Pump.fun’s transfer of 99,999 SOL, worth approximately 22.7 million, to Kraken. The transfer caused a stir and some users suggested a sale. Lookonchain previously wrote on X (formerly Twitter) calling it a sale before explaining that it was just a deposit.

Pump.fun has gained traction since its launch as the community embraces the meme coin launch pad. Meme coins grew this quarter, with several tokens posting double-digit gains before the price correction.

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Can Solana turn the tide?

Solana bulls are optimistic about a price increase. While the bulls have settled into the monthGiven the positive targets, bears believe that the recent setbacks could erase the huge gains. However, on-chain factors point to a bullish scenario for the asset as the network fee declines. Crypto user Peter Horton explained the bullish scenario for the asset.

“The Solana chain’s GDP reached a new high in October, both in absolute terms ($300 million) and in market share (45%). Chain GDP is the sum of all fees collected by projects on a network. In October, Solana projects collected more fees than projects on Ethereum and its L2s combined.”