{"id":27416,"date":"2022-11-11T15:38:35","date_gmt":"2022-11-11T10:08:35","guid":{"rendered":"https:\/\/coinswitch.co\/switch\/?p=27416"},"modified":"2022-11-11T15:38:35","modified_gmt":"2022-11-11T10:08:35","slug":"solana-crypto-price-in-focus-as-token-unstaking-stalls","status":"publish","type":"post","link":"https:\/\/coinswitch.co\/switch\/news\/solana-crypto-price-in-focus-as-token-unstaking-stalls\/","title":{"rendered":"Solana crypto price in focus as token unstaking stalls"},"content":{"rendered":"<p>The Solana crypto price crash started on 6 November 2022 amid <a href=\"https:\/\/coinswitch.co\/switch\/news\/hit-by-ftx-turmoil-solana-turns-a-deeper-shade-of-red\/\">FTX\u2019s SOL dump<\/a> speculations. However, the growing FUD around Solana\u2019s token\u2019s unstaking plan further fueled the crash as investors\/traders expected the unstaked tokens to move to exchanges for a massive sell-off. To limit the Solana crypto price crash and lower the FUD, Solana Foundation has finally decided to postpone the process of unstaking, without specifying a date.<\/p>\n<h2>When did the Solana crypto price crash begin?<\/h2>\n<p>The FUD cycle started on 9 November with the on-chain tool Lookonchain informing the Twitter community about the ongoing unstaking.<\/p>\n<p>Here is what the tweet read:<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">1\/ A total of 18,775,348 <a href=\"https:\/\/twitter.com\/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">$SOL<\/a> ($330M) will hit the market after 23 hours.<\/p>\n<p>In Epoch 370, 18.77M <a href=\"https:\/\/twitter.com\/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">$SOL<\/a> has been unstaked.<\/p>\n<p>When Epoch 370 is over, 18.77M <a href=\"https:\/\/twitter.com\/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">$SOL<\/a> can be withdrawn and sold to the market.<a href=\"https:\/\/t.co\/T9cgdB9KnY\">https:\/\/t.co\/T9cgdB9KnY<\/a><a href=\"https:\/\/t.co\/pKtysd0a81\">https:\/\/t.co\/pKtysd0a81<\/a> <a href=\"https:\/\/t.co\/qxiSqWuSeu\">pic.twitter.com\/qxiSqWuSeu<\/a><\/p>\n<p>&mdash; Lookonchain (@lookonchain) <a href=\"https:\/\/twitter.com\/lookonchain\/status\/1590285580684128257?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">November 9, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>As Solana crypto prices were already bleeding, Lookonchain\u2019s revelation worsened the market sentiment\u2014especially at the SOL\u2019s counter. Solana INR price dropped to \u20b91,020, leading to its exit from the list of top 10 cryptos by market cap.<\/p>\n<p>Solana is currently ranked 12, behind Polygon and Polkadot, according to <a href=\"https:\/\/coinmarketcap.com\/\" target=\"_blank\" rel=\"noopener\">Coinmarketcap<\/a>.<\/p>\n<h2>More about unstaking<\/h2>\n<p>Unstaking is a standard way for releasing tokens when a stake account or even a validator ceases to exist or loses validation rights. In Solana\u2019s case, unstaking follows an Epoch\u2014roughly a 2-day timeframe. Lookonchain\u2019s Twitter thread revealed that SOL tokens worth $330 million will be unstaked by the end of Epoch 370\u2014a specific timeframe.<\/p>\n<p>What triggered users is the fact that unstaked tokens are open to withdrawals or can be sold. If sold, SOL tokens, numbering about 18,775,348 and worth $330 million, could push the prices even lower.<\/p>\n<p>However, 18.77 million wasn\u2019t the final SOL count, up for unstaking. It was 28.50 million SOL or 5.4% of the circulating supply.<\/p>\n<h2>Enter Solana Foundation<\/h2>\n<p>On 10 November, Solana Foundation tweeted saying that Hetzner\u2014a cloud provider running Solana nodes\u2014removed several validators due to policy changes.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">On 11\/2, Hetzner removed many of Solana\u2019s independent validators in connection with a change of Hetzner\u2019s policy. As a result, the Solana Foundation began the process of unstaking 28.5M SOL delegated to those validators as part of the Solana Foundation\u2019s Delegation Program&#8230;<\/p>\n<p>&mdash; Solana Foundation (@SolanaFndn) <a href=\"https:\/\/twitter.com\/SolanaFndn\/status\/1590464124827635712?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">November 9, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>And that is why token unstaking started. The unstaked tokens were to be staked to other validator accounts in different locations. However, the market interpreted this as Solana whales leaving their positions to sell SOL tokens in bulk.<\/p>\n<p>To check the price erosion and the resultant panic, the foundation has currently stalled unstaking\u2014re-staking all of the 28.5 million SOL tokens. The foundation mentioned that all the to-be unstaked tokens as part of the delegation program are owned by them, and no third party can initiate staking or unstaking.<\/p>\n<p>It appears the announcement has worked well for Solana crypto prices as SOL is currently trading up by 19% over the past 24 hours. However, the weekly loss still stands at 47.35%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Solana crypto price crash started on 6 November 2022 amid FTX\u2019s SOL dump speculations. However, the growing FUD around Solana\u2019s token\u2019s unstaking plan further fueled the crash as investors\/traders expected the unstaked tokens to move to exchanges for a massive sell-off. To limit the Solana crypto price crash and lower the FUD, Solana Foundation [&hellip;]<\/p>\n","protected":false},"author":76,"featured_media":27417,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[7701],"tags":[6467,6536],"class_list":["post-27416","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-crypto","tag-news"],"acf":{"json_ld_schema":"\n[{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"@id\":\"https:\/\/coinswitch.co\/switch\/us-stocks\/wall-street-jottings\/#FAQPage\",\"headline\":\"Wall Street jottings: A personal, guided tour to investing in US stocks\",\"keywords\":\"Personal Guide, US Investing, \",\"datePublished\":\"2022-07-22T13:28:55+05:30\",\"dateModified\":\"2022-09-19T19:04:28+05:30\",\"dateCreated\":\"2022-07-22T13:28:55+05:30\",\"author\":{\"@type\":\"Person\",\"name\":\"Ananda Banerjee\",\"description\":\"Ananda Banerjee is a creative copywriter at heart, a technical writer by profession, and a multifarious Web 3.0 creator in his leisure time. An ever-curious crypto connoisseur, he believes endless reading and purposeful learning are the keys to written and verbal specificity.\",\"url\":\"https:\/\/coinswitch.co\/switch\/author\/ananda-banerjee\/\",\"sameAs\":[\"A_B_boying\",\"https:\/\/www.linkedin.com\/in\/ananda-banerjee\"],\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/acf35d8cc57009e7786c2fbd6b587f8d?s=96&d=mm&r=g\",\"height\":96,\"width\":96}},\"image\":[{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/coinswitch.co\/switch\/us-stocks\/wall-street-jottings\/#primaryimage\",\"url\":\"https:\/\/coinswitch.co\/switch\/wp-content\/uploads\/2022\/07\/Wall-Street-Jottings.jpg\",\"width\":\"1800\",\"height\":\"1080\"},{\"@type\":\"ImageObject\",\"url\":\"https:\/\/coinswitch.co\/switch\/wp-content\/uploads\/2022\/07\/Wall-Street-Jottings-1200x900.jpg\",\"width\":\"1200\",\"height\":\"900\"},{\"@type\":\"ImageObject\",\"url\":\"https:\/\/coinswitch.co\/switch\/wp-content\/uploads\/2022\/07\/Wall-Street-Jottings-1200x675.jpg\",\"width\":\"1200\",\"height\":\"675\"}]}]\n","json_ld_custom_schema":"","youtube_vodeo_url":"","seo":{"title":"","keywords":"","description":"","canonical":""},"blog_banner_image":false,"blog_coin":false,"download_the_app":{"button_value":"","button_url":""},"twitter_card":{"twitter_title":"","twitter_description":"","twitter_link":""},"maturity_tag":"","post_author":false,"guest_author":false,"hide_toc":true,"select_disclaimer":"Article Default Disclaimer","key_takeways":false},"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/posts\/27416","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/users\/76"}],"replies":[{"embeddable":true,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/comments?post=27416"}],"version-history":[{"count":1,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/posts\/27416\/revisions"}],"predecessor-version":[{"id":27419,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/posts\/27416\/revisions\/27419"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/media\/27417"}],"wp:attachment":[{"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/media?parent=27416"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/categories?post=27416"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/tags?post=27416"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}