A significant player in the Solana (SOL) market has been offloading substantial holdings over recent months, a move that could have a notable impact on Solana’s price and its ambitious target of reaching $1,000. Despite these sell-offs, the cryptocurrency’s fundamentals remain robust, suggesting potential for a significant rally in the future.
On-chain analytics platform Lookonchain identified a Solana whale who has divested 594,000 SOL, equivalent to $86 million, this year alone. Starting from January 15, this major holder has consistently deposited Solana tokens to exchanges like Coinbase, Binance, and OKX, averaging about one sale each week. The whale’s most recent transaction was on August 12, involving the sale of 5,000 SOL worth $720,000.
Further on-chain data reveals that this whale now holds a mere 0.1 SOL in its wallet, indicating that the immediate selling pressure from this entity has subsided. However, another major player, the Pump.fun launchpad for meme coins, poses a similar concern for the Solana community.
Lookonchain noted that Pump.fun’s fee account has offloaded 222,073 SOL, translating to 35.54 million USDC at an average price of $160 over the past three months. This account still retains a significant 274,583 SOL, equating to $39.7 million, suggesting continued potential for heavy selling pressure on SOL’s price.
These substantial offloads by Solana whales raise concerns about hindering Solana’s projected rise to $1,000. Crypto analysts like Ali Martinez have voiced optimism, predicting that SOL could hit this milestone during the current bull run. Martinez even compared Solana’s current price trends to the bull run of 2021 to bolster his prediction.
Another analyst, Crypto Kaleo, asserted that a $1,000 target for Solana is feasible if the token can mirror the growth trajectory of Ethereum, which achieved an all-time high of $4,800 in its last cycle.
Solana’s core fundamentals appear strong and indicate that SOL could enjoy a significant price rally during this bull run. A key factor that could drive this rally is the potential launch of a Spot Solana ETF in the United States, which would likely inject new capital into the Solana ecosystem.
Meanwhile, Solana continues to emerge as a competitor to Ethereum in terms of decentralized exchange (DEX) volume. Data from DeFiLlama shows that in the past week, $10.126 billion has been traded on Ethereum’s DEXs, while Solana’s DEXs have seen $8.667 billion in trading volume.
Despite the current sell-offs and market fluctuations, Solana’s foundational strengths suggest that it may still have significant upward potential, even if reaching the $1,000 mark remains a topic of debate among analysts.
