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Solana Whales Bet Big on Bearish Options as $2B Token Unlock Looms

Tue, 25 Feb 2025, 04:48 am UTC

Solana Whales Bet Big on Bearish Options as $2B Token Unlock Looms. Source: EconoTimes

Solana’s (SOL) options market is heating up on Deribit, with whales making significant bearish bets as SOL’s price continues to slide ahead of a major token unlock. Last week, block trades on Deribit totaled $32.39 million—nearly 25% of the $130.74 million options activity—marking the second-highest block trade ratio on record, according to Amberdata.

Block trades, typically executed over-the-counter by institutional investors, involve large contract volumes with minimal impact on market prices. Last week's spike in SOL options featured a heavy preference for put contracts, used to hedge against further declines. "Nearly 80% of SOL block-trade volume was in put options, compared to just 40% for BTC and 37.5% for ETH," noted Greg Magadini, director of derivatives at Amberdata.

SOL has dropped 46% to $160 in just over five weeks, with declining activity on Solana-based decentralized exchanges (DEXs). The once-thriving memecoin trading ecosystem, which saw a peak with the TRUMP token launch on Jan. 17, has since cooled, weakening SOL’s bullish outlook.

Adding to the bearish sentiment, Solana is set to unlock 11.2 million SOL tokens worth approximately $2.07 billion on March 1. "This represents 2.29% of the total supply, with a significant portion from the FTX estate and a foundation sale," said Lin Chen, Deribit's Asia Business Development Head. Given that this unlock accounts for nearly 59% of SOL’s daily spot trading volume, traders are hedging with put options in anticipation of increased volatility.

With the looming unlock and decreasing on-chain activity, SOL’s near-term outlook remains uncertain, fueling demand for bearish options strategies.

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Great article. Requesting a follow-up. Excellent analysis.

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Great article. Requesting a follow-up. Excellent analysis.
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