Deep-pocketed crypto investors have been noticeably active in Solana (SOL), a cryptocurrency whose price has surged over twentyfold since the beginning of the year. These crypto whales are transferring hundreds of thousands of dollars’ worth of SOL to major crypto exchanges, sparking speculation of a potential sell-off pressure on the horizon for the altcoin.
Whale Alert, a service that tracks blockchain transactions, has reported multiple large-scale transfers involving Solana. These notifications reveal that crypto whales are moving their SOL holdings to anonymous wallet addresses and, more specifically, to crypto exchanges.
According to Whale Alert, an anonymous crypto whale recently moved over 1.2 million SOL, valued at approximately $150 million, to unknown wallet addresses. The identity of this whale and the reason for the transfer remain undetermined. Another unidentified whale transferred over 456,000 SOL, worth $54 million, to a different anonymous wallet.
In similar whale activity, an anonymous wallet transferred 163,000 SOL, valued at $19.4 million, to the Binance crypto exchange. Other significant SOL transactions include transfers of roughly $30.9 million worth of 256,000 SOL and $10.4 million worth of 87,351 SOL to Coinbase, as well as a transfer of about $10.8 million worth of 97,294 SOL, also to Coinbase.
Historical data suggests that such whale transactions are not a good sign, as transfers to exchanges generally indicate increased selling pressure and a potential drop in the price of an altcoin.
Current data shows SOL trading at $114.6 after a 2.14% increase over the last 24 hours. The altcoin has experienced a staggering rise of 52.96% over the past week, 97.38% over the past month, and 1,050% since the start of the year. This growth in SOL is part of the bullish wave that took Bitcoin (BTC) up to $44,000. Meanwhile, on-chain data from Santiment shows increasing hype and sentiment around Solana, indicating more social media discussion about the altcoin. Additionally, there has been a hundredfold increase in transaction volume on Solana-based decentralized exchanges (DEXs) since the beginning of the quarter, providing positive signals for current and potential Solana investors.