The crypto market is indeed taking a hit as of February 25, 2025, with Solana (SOL) at the center of the storm. Reports indicate that approximately 11 million $SOL tokens—valued at roughly $2 billion based on current prices—were unlocked on March 1, 2025, as part of a scheduled release from Solana’s vesting program tied to early investors and the FTX bankruptcy estate. This massive unlock, representing about 20% of SOL’s circulating supply of 488 million tokens, has sparked widespread concern about downward price pressure, contributing to a broader market bleed.
SOL’s price has tanked, dropping to around $136-$140 per token, down over 15% in the past week alone, with some exchanges showing even steeper 24-hour declines. This slide has pushed the SOL/BTC trading pair to its lowest level in over two years, hovering around 0.00178 BTC per SOL, a range last seen in late 2022 during the FTX collapse fallout.
Solana’s memecoin scene—think BONK, WIF, MEW, and newer players like TRUMP and MELANIA—thrives on hype, community momentum, and cheap, fast transactions. But the unlock, largely tied to the FTX estate dumping tokens bought at $64 last year, has flooded the market with supply, spooking traders. On-chain data shows trading volume spiking—$9.9 billion in 24 hours for SOL alone—but liquidity on DEXs like Raydium is thinning as panic selling outpaces buying
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Back then, SOL cratered to $8 before rebounding, but this time, the unlocks scale—far exceeding the $7.5 billion in unlocks spread over the prior three months—has traders bracing for a potential revisit of sub-$100 levels. The market’s fear is palpable, with Bitcoin itself dipping below $94,000 after failing to hold the $100,000 mark, dragging altcoins like SOL deeper into the red.
The unlock stems largely from the FTX estate, which offloaded SOL at $64 per token in auctions last year, netting buyers like Galaxy Digital a hefty profit margin even at today’s depressed prices. While some argue these sales are handled over the counter (OTC) to limit market impact, skepticism runs high—OTC buyers, likely institutional players, may still dump portions on open markets, exacerbating the bleed.
On-chain data backs this up: Solana’s 24-hour trading volume spiked to $9.9 billion, yet liquidity on DEXs like Raydium has thinned, hinting at panic selling outpacing buying interest. Sentiment on X reflects the chaos—users warn of a “bloodbath” for SOL and its memecoin ecosystem, with one noting a 2.3% supply increase from the unlock could sink prices further, especially as on-chain volume dries up.
Others see it as a buying opportunity, pointing to SOL’s historical resilience and its outperformance of Ethereum (ETH) over two years. The broader crypto market isn’t spared either—Ethereum’s hovering around $2,500, and memecoins across chains are reeling, with total market cap shedding billions in days.
The SOL/BTC two-year low underscores Solana’s struggle to hold value against Bitcoin amid this supply shock. While Solana’s tech—boasting 50,000 TPS—keeps it a darling for DeFi and NFT enthusiasts, the immediate outlook is grim. If selling pressure persists and no fresh narrative (like a Pump.fun AMM rollout) emerges, SOL could test $100 or lower, dragging the altcoin market with it. For now, the bleed’s real, and the unlocks ripple effects are just starting to play out.