Data shows a Solana whale has deposited $10.2 million in SOL to the crypto exchange Coinbase as the asset’s price has risen by 16% today.
Solana Whale Transfers $10.2 Million In SOL To Coinbase
As per data from the cryptocurrency transaction tracker service Whale Alert, a large SOL transfer has been spotted on the blockchain during the past day. The transaction involved the movement of a total of 537,352 tokens, worth about $10.2 million, when the transfer was executed.
Since then, however, the cryptocurrency price has seen some further rise, so the same stack of coins is worth upwards of $11.1 million at the latest exchange rate.
As the amount involved here is large, the sender behind this transfer was likely a single whale or an entity of multiple large investors. Sometimes, the movements of these humongous holders can cause noticeable effects on the market due to the sheer scale of coins involved.
Due to this reason, transactions from whales can be something to watch out for. In what way any transfer of this kind would affect the price depends on the exact intent the whale had in mind while making it.
Here are some additional details regarding the latest Solana whale transaction that may shed some light on the reason behind it:
Looks like this massive movement of coins only required a fee of 0.000019 SOL to be possible | Source: Whale Alert
As shown above, the sending address in the case of this Solana whale transaction was an unknown wallet. Such addresses are unattached to any known centralized platform, meaning they will likely be offsite personal wallets.
On the other hand, the receiver was a wallet attached to Coinbase, a centralized cryptocurrency exchange. Transactions like these, where coins move from personal wallets to exchange platforms, are called “exchange inflows.”
One of the main reasons why an investor may deposit their coins to a platform like Coinbase is for selling-related purposes. Because of this reason, inflows can hurt the price.
Since, in the current case, the Solana exchange inflow was quite large, it may cause a visible bearish effect on the asset’s value. That is only, of course, assuming that the whale does intend to sell the coins with this move.
However, considering that the transfer has come when Solana has been enjoying some rapid uptrend, already up 16% in the past 24 hours, there does appear to be a fair chance that the whale intends to cash in on this profitable opportunity with the deposit.
Nonetheless, Solana hasn’t shown any significant downtrend since the transaction occurred. Rather, the price has only increased further, implying that the whale’s selling pressure, if any, may have already been outweighed by the buying pressure.
But one possibility that can’t be discounted is that the whale may have made the deposit with selling as the goal in mind, but they haven’t pulled the trigger yet. In such a scenario, the bearish effect may appear with some delay.
At the time of writing, Solana’s price is trading around $20.46, down 2% in the last week.
SOL has rapidly risen in the past day | Source: SOLUSD on TradingView
Featured image from Todd Cravens on Unsplash.com, chart from TradingView.com