According to Crypto Rover’s post on the X platform, these sales began at 06:00 UTC and continued for the past four hours. Binance reportedly sold a total of 5,000,000 $SOL at an average price of $120. This development led to a significant drop in $SOL’s price, causing it to decline from $125 to $118.

During this period, $SOL trading volume on Binance surged by 150%, reaching 10,000,000 SOL. This unusual activity raised concerns among investors and triggered volatility in $SOL’s trading pairs with Bitcoin and Ethereum. The $SOL/BTC pair dropped by 2%, while $SOL/ETH declined by 1.5%.

Market Impact of Binance’s Solana Sell-Off

Binance’s high-volume $SOL sale created strong selling pressure in the market. This, in turn, prompted other investors to follow suit, further pushing the price downward. On-chain data indicates that the number of active addresses on the Solana network decreased by 10%, signaling a drop in network activity.

This selling pressure on Binance also affected other major exchanges. Coinbase reported a 70% increase in $SOL trading volume, reaching 3,500,000 SOL, while Kraken saw a 50% rise, bringing its volume to 2,000,000 SOL. These figures suggest that Binance’s sell-off had a broader market impact, negatively affecting liquidity and price stability.

A downward trend was also observed in the futures market. According to Binance Futures data, the funding rate for $SOL turned negative, falling to -0.01%. This indicates that futures traders are leaning towards short positions, reflecting a generally bearish market sentiment.

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