Solana Token Unlock on March 1, 2025: Everything You Need to Know

Bittime - On March 1, 2025, the Solana (SOL) blockchain is scheduled to conduct a token unlock of 11.2 million SOL, worth around $2.03 billion or more than Rp32 trillion. These tokens are part of the assets owned by FTX, which is currently in the process of being liquidated following its bankruptcy.

With the token amount equal to 2.4% of the total circulating supply, many investors are starting to worry about the impact it will have on the SOL price in the market. Will the Solana token unlock in March trigger massive selling pressure? Or is the market ready to absorb this additional supply? Let's dive deeper.

What is Solana Token Unlock?

Solana Token Unlock is the process by which previously locked tokens become available for trading. Typically, unlocks occur due to vesting schemes (gradual distribution of tokens to investors or project teams), but in this case, the unlock occurred due to FTX liquidating assets to pay its creditors.

Since the token is derived from liquidated assets, there is a high probability that most of the 11.2 million SOL will be sold directly to the market. If this happens, the SOL supply will increase drastically in a short period of time, which could cause a price drop due to heavy selling pressure.

Solana Token Unlock March Details:

• Number of Tokens Unlocked: 11.2 million SOL
• Estimated Value: $2.03 billion
• Token Source: FTX assets being liquidated
• Percentage of Circulating Supply: Approximately 2.4% 

Also read:  XRP and SOL, Two Crypto Assets with Potential to Make Money, Here's the Analysis!

Solana Token Unlock Schedule

Solana has a set token unlock schedule for various periods. The March 1, 2025 unlock is part of a series that has been ongoing since Solana's initial launch. 

Typically, unlocking is done in several stages:

• Periodic Unlock: Tokens are released gradually to early investors, developers, and the ecosystem.
• Mass Unlock: Such as the event on March 1, 2025, where a significant amount of tokens are released at once.
• Vesting Schedule: Some tokens have a vesting period, so not all of them are immediately available on the market after unlock.

This schedule was created to mitigate the impact of high volatility and ensure stability in the Solana ecosystem.

Market Reaction and Impact on SOL Price

History shows that whenever there is a large token unlock, the asset price tends to experience high volatility. This is also starting to be seen in the current price of Solana.

SOL price has risen by almost 1% in the past 24 hours, hitting a three-month low of $142. Many traders have started preparing shorting strategies ahead of the unlock.

Negative indicators in the SOL futures market show that more traders are speculating that there will be major selling pressure after the unlock.

However, not everyone believes the impact will be that big. There are several reasons why Solana can still survive this wave.

Also read:  XRP and Solana ETFs Will Be Approved This Year, Get Ready Guys!

Will Solana Survive or Fall?

Despite concerns surrounding the token unlock, some analysts remain optimistic about Solana’s future. Here are some factors that could mitigate its negative impact:

1. Solana's robust ecosystem
   Solana has proven itself to be one of the fastest and most efficient blockchains, with many DeFi (Decentralized Finance) and NFT projects continuing to thrive within its ecosystem.
2. Solana's deflationary mechanism
   Solana has a system where a portion of transaction fees are burned (removed from the total supply), which can help offset the inflationary impact of this unlock.
3. Big investor accumulation action
   Some whales (big investors) and institutions are still showing interest in SOL. If they absorb the supply released from FTX, the selling pressure can be more controlled.

However, there is one thing that makes this unlock different from the others: these tokens come from liquidation, not from regular vesting. That means that most of these tokens will likely be sold directly to the market.

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Investor Strategy in Facing Solana Token Unlock

For investors, there are several steps that can be taken to deal with the volatility resulting from this unlock:

1. Monitor Price Movement

Before and after the unlock occurs, monitor the price movement of SOL. If the price experiences a sharp drop, this could be an indication of high selling pressure.

2. Take Advantage of Volatility for Trading

If you are a short-term trader, this event can be an opportunity to buy when the price drops and sell when the price rises again.

3. Long-Term Portfolio Evaluation

For long-term investors, this event could be an opportunity to buy SOL at a cheaper price if you believe in Solana's long-term fundamentals.

4. Don't Panic, Stay Rational

Crypto markets are notoriously volatile. Don't make emotional decisions based on momentary price movements.

Conclusion

The Solana Token Unlock on March 1, 2025 will bring high volatility to the market. A total of 11.2 million SOL will be released, creating the possibility of heavy selling pressure. However, if demand is high enough, Solana may be able to weather the impact well.

For investors, this can be a great opportunity or a risk to avoid, depending on their strategy and risk tolerance. Most importantly, stay tuned to the news, monitor market movements, and make rational decisions.

FAQ

1. Why is Solana (SOL) Doing a Token Unlock on March 1, 2025?

The token unlock is happening as part of FTX’s asset liquidation, not Solana’s regular vesting. A total of 11.2 million SOL (worth $2.03 billion) will be released to the market, which will likely be sold to pay creditors.

2. Will This Token Unlock Affect SOL Price?

Yes, because a large additional supply can  depress prices if demand is not enough to absorb it. Data shows many traders have started  shorting SOL , which could trigger higher volatility.

3. How Can Investors Deal With This Token Unlock?

• Monitor liquidity and trading volume to understand how the market is absorbing new tokens.
• Avoid panic selling , observe the trend after the unlock occurs.
• Consider buying opportunities if the price experiences a sharp correction, especially if you believe in Solana's long-term potential.

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Reference

Solana Compass, Solana Tokenomics, accessed February 26, 2025

Messari,  Solana Token Unlock , accessed February 26, 2025 

Author: RC