Summary: A cryptocurrency whale incurred a $3.1 million loss on Solana after depositing 49,858 SOL tokens worth $8.46 million to Kraken on May 16, 2025, highlighting the risks of staking amid a 29% price drop over six months.
Major Solana investor, often referred to as a “whale,” faced a stark reminder of the crypto market’s volatility this week. According to on-chain analytics provider Lookonchain, the whale withdrew 48,185 SOL tokens—valued at $11.58 million—from the Kraken exchange six months ago at $240 per token and staked them to earn rewards.
By May 16, 2025, the price of SOL had fallen to $169.71, and the whale deposited 49,858 SOL back to Kraken, resulting in a $3.11 million loss despite earning 1,673 SOL ($286,000) in staking rewards.
The transaction reflects broader trends in the Solana ecosystem, which has seen significant volatility in 2025. A report from Currency Analytics on Jan. 10 noted that whale movements, such as unstaking and selling, can create oversupply in the market, putting downward pressure on prices. With over 1.23 million active stakers holding 393 million SOL tokens worth $75 billion, large-scale actions like this can ripple through the market.
Solana’s price drop aligns with fluctuations in Bitcoin and a cautious sentiment among investors, some of whom may be taking profits after an extended bull run.
Staking, a process where users lock up tokens to secure the network and earn rewards, is a key feature of Solana’s proof-of-history consensus mechanism, which enables fast and scalable transactions.
However, as this whale’s experience shows, staking rewards—often around 3.5% annualized—can be overshadowed by market downturns. Social media reactions on X captured the sentiment, with user belchman_ commenting, “study staking,” while MajeGm1 noted, “you haven’t lost until you sell.”
Despite the loss, Solana remains a focal point for institutional interest. On March 19, Bloomberg reported that Volatility Shares LLC launched the first-ever Solana futures ETFs, reflecting the token’s $67 billion market cap and appeal to investors. Yet, the whale’s $3.1 million loss underscores the risks that even large players face in a bearish market, raising questions about the sustainability of staking strategies.
Looking ahead, analysts suggest Solana’s long-term fundamentals remain strong, with growing adoption in decentralized finance (DeFi) and beyond. However, investors are urged to monitor key support levels and whale activity, which could signal further volatility in the near term.
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