On-chain data shows that Solana Whale has just moved a large SOL stack to Binance, which could prove bearish for the asset price.
Solana Whale deposited 1 million SOL to Binance today
According to data from a virtual currency transaction tracking service. whale alertseveral large SOL transactions have occurred on the blockchain over the past day.
Specifically, six large transfers have been observed on the network. Two of these transactions were huge, involving $362 million worth of tokens and his $498 million worth of tokens.
However, both of these unusual transfers were between unknown wallets. Such addresses are typically users’ personal self-custodial wallets, as they are not associated with any known centralized exchange.
For this reason, we generally cannot say anything about transfers between unknown wallets. In many cases, they are simply transferred by the investor to a new wallet, and of course have no particular impact on the market as a whole.
However, four other whale trades from the previous day involved central agencies, so the speculation surrounding them may have a little more basis.
Of these four transactions, one transaction stands out in particular. With this move, the whale moved her 1 million sol on the network. This equates to more than $166 million at the time of transfer. Below are additional details regarding this move.
Looks like this massive move only required a negligible fee of 0.000005 SOL to go through | Source: Whale Alert
As you can see, the recipient in this case is a wallet affiliated with crypto exchange Binance, implying that the whale transferred the coins from his address to the platform.
Such transactions are known as exchange inflows. Users make these transfers when they wish to use any of the exchange services, including sales.
Therefore, inflows to exchanges can be bearish for cryptocurrencies. In particular, large inflows by whales can cause visible fluctuations in the market.
Similar to this huge SOL transfer, the other three transactions mentioned above were also foreign exchange inflows. However, the scale was much smaller, with an average value of $33.2 million.
Two of these trades went to Binance, and the third (and most recent) went to Coinbase. Interestingly, the address pairs for these two Binance transfers are the same, suggesting that the same whale may have made the transfers.
With inflows from four exchanges, $265.6 million worth of Solana found its way onto exchanges. This is obviously a significant amount and can therefore have an impact on asset prices.
However, there is no guarantee that any of the whales involved made these transactions for sale purposes. It is also possible that they made this move for other purposes not directly related to the market.
Although Solana has been depressed in recent days, there is certainly a possibility that these whales decide to retreat.
sol price
Following the recent drawdowns that Solana has seen, the asset price has fallen to the $174 level.
The price of the asset appears to have gone through some drawdown recently | Source: SOLUSD on TradingView
Featured image from Rod Long on Unsplash.com, chart from TradingView.com
