Sol Meltdown and upcoming token Unlock Spark Whale Combining Bearish options that perform in the derivit
The Deribit market options for Sola’s Sol token became active, with whales joining bearish bets as the token price continues to decrease early in an upcoming multi-billion dollars unlocking .
Last week, the Sol Block traded at $ 32.39 million in a notional value crossed the tape in the derivit, representing about 25% of the total activity of $ 130.74 million options. The residue of the activity consists of trading screens, according to Amberdata. That is the second highest proportion of trading blocks in the total activity recorded.
A “block trade” in the options refers to a significant, privately agreed transaction with options between the two parties involving a large number of contracts. Such trading, commonly associated with whale activity, were executed over-the-counter and outside the regular order book and then booked in exchange, allowing a minimal impact on market prices .
Options are derivative contracts that give the consumer the right but not the obligation to buy or sell the underlying owner, in this case, Sol, at a preset price on or before a certain date. A call option provides the right to buy, while a choice to put in the right to sell. In the derivit, costing more than 85% of the Global Crypto Options activity, a contract of choice represents 1 sol.
Last week’s spike in Sol Block trading features a preference for Put Options, used by merchants to sort out or earn from a potential slide slide.
“Almost 80% of block-trade volume is concentrated in contracts. Compared to only 40% placed for BTC and 37.5% are placed for ETH during the same time,” Greg Magadini, director of the derivatives In theberry.
Whale requesting options for options will come as Sol’s perspective appears to be following a 46% price slide up to $ 160 in just five weeks. Solana’s blockchain activity, which became a go-to-place for Memecoin businessmen last year, peeked at the launch of Trump’s token on January 17, three days before Donald Trump was inaugurated as President of the US
Since then, the number of daily transactions in Solana and the aggregate daily volume in Solana based on decentralized exchange has refused significantly, according to Data Source Artemis. That was the weakening of the bullish case for Sol.
Plus, the upcoming SOL token I -LOCK On January 1 presents a significant headwind, every head of developing the business of the derivit Lin Chen.
“Solana (Sol) will have a major token unlocking event on March 1, releasing 11.2 million Sol tokens, worth more than $ 2.07 billion. It represents 2.29% of Total supply.
Chen explained that the huge unlocking could be a source of volatility in the market market due to nearly 59% of the volume of Sol -day -to -day trade. Therefore, it is natural to see a lot of flow of prejudice in putting the options in expecting a potentially extended slide of solu price.
“Many merchants will also take this opportunity with a long vol (Atility) to produce a good yield,” Chen said.
