Whale Swaps $5 Million into SOL, Causing mSOL Price to Plummet
In less than half an hour, the price of mSOL from the liquid staking platform Marinade Finance plummeted by 20%.
On the evening of December 12, a large whale swapped over $5 million worth of mSOL into SOL, putting significant pressure on the price of mSOL. The token dropped to $67, down from $77, marking a nearly 20% decline before swiftly recovering.
24-Hour mSOL Price Volatility
According to The Block Research, the whale's large-scale swap directly impacted mSOL’s price. Since the beginning of the year, Marinade Finance has run an “Open Doors” program, encouraging users to stake SOL in exchange for mSOL to interact with other DeFi platforms. The program aims to distribute 160 million marinade tokens as rewards in 2023, with a goal of attracting over 40 million SOL to the platform.
Marinade contributes a significant portion (80%) of the total value locked (TVL) on Solana, amounting to $721 million spread across various staking products. This figure has tripled in less than two months, especially after the platform blocked UK users.
📣 Introducing the Open Doors Program!
— Marinade 🛡️ (@MarinadeFinance) January 24, 2023
Marinade is a public good that aims to be governed ultimately by the greater Solana community.
The mission of Open Doors is to incentivize Solana's builders to support decentralization and asset liquidity through $mSOL.
🧵 Here's how: 👇 pic.twitter.com/aP6Qw1sbkq
Solana Ecosystem TVL Fluctuations
Marinade currently offers a 9.03% APY for native staking and 8.6% for liquid staking. The growth of liquid staking has significantly boosted the TVL on Solana. Campaigns like airdrops from Pyth Network, Jito Sol, and Jupiter have kept the hype alive.
SOL itself is on a recovery path, continuously setting new annual highs. The highest level reached since May 2022 was $77.78.
Stay tuned for more updates on this developing story.
