Panic Button Hit: These Altcoin Processes Are Shutting Down!

The FTX crisis deeply affected Solana (SOL), as well as the exchange’s own cryptocurrency FTX Token (FTT). High volatility in Solana has caused platforms to place restrictions on SOL processes. The last trading platform to point out the restriction on SOL processes was dYdX. Here are the announcements on SOL volatility and altcoin processes…

Record volatility in Solana: Panic captivates altcoin

The long-awaited burst of crypto volatility has arrived, signaling the panic for Solana’s SOL token. According to data provider Amberdata, SOL’s seven-day implied volatility rose to 270 percent year-on-year. This metric measures the expected levels of expected price change. SOL’s seven-day call/put-call curve dropped to -99%. This is a sign of record demand for bearish versus bullish invitations. Investors often buy while waiting for a price drop.

“There is panic in the SOL market,” said Gregoire Magadini, head of derivatives at Amberdata. He noted the increase in implied volatility. Noting that traders were nervous about SOL’s value and huge liquidation potential, he used the following words:

SOL is a collateral asset. It is possible that FTX/Alameda will be liquidated because it needs cash. Therefore, the options market points to more volatility in the SOL against BTC.

Solana processes throttled: Latest announcement came from dYdX

Meanwhile, decentralized exchange dYdX placed Solana processes in “close only” mode. This means that users will only be able to close statuses on permanent futures contracts and not open new ones. dYdX cited “market volatility” as the reason for making the move.

dYdX is not the only process platform that is restricting Solana processes due to its high volatility and falling prices. As we reported, centralized exchange has stopped its Solana-based stablecoin deposits and withdrawal processes. In addition, OKX exchange announced that it will stop listing Solana futures and new options.

Altcoin fell 58 percent in four days

Rumors of troubled exchange FTX’s sister company Alameda liquidating Solana assets have already sent SOL into a free fall. The token fell 58 percent in four days to about $10. It’s changing hands at $15 with a slight recovery at the time of writing. Additionally, the incoming supply flood seems to have frightened investors in both spot and derivatives markets.

Solana validators, which provide security to the blockchain, are set to unlock approximately $800 million in SOL assets, which account for 5.4 percent of the total supply of the cryptocurrency. In addition, token emissions are expected to continue in the short term, keeping supply-side pressures strong. TIE Research used the following words:

In addition to SOL’s always withdrawing from validators, our emission and unlock tracking for the token pointed to an upcoming core team allocation entitlement in 11 days. This unlock shows that 2,558,000 SOLs have entered the market. We expect at least 32,214,758 SOLs to come in for potential sale in the secondary market. This number will increase as a result of further deactivation of the validator.

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