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  • Writer's pictureJamal Saafir

FTX's Solana Holdings Being Staked By Bankruptcy Estate Instead Of Sold

According to a report from CoinDesk, the FTX bankruptcy estate has evidently staked millions of dollars worth of Ethereum (ETH) and Solana (SOL) over the weekend, blockchain addresses connected to the crypto exchange seemingly reveal.

Over 5.5 million SOL valued at $129 million at current prices and over 24,000 ETH valued at $37 million have been staked, separate transactions able to be viewed on the blockchain show.

Staking is a process of locking up crypto holdings on a blockchain to help maintain the network in exchange for more of the tokens being staked. The estate’s position may be to earn a notable amount over the years to come as rewards are produced on the staked positions.

On-chain watchers on X (formerly Twitter) citing the data said the SOL seemed to have been staked on Figment, where it will earn 6.98% annually on the holdings – or over $8 million in SOL tokens which get compounded.

Ethereum transactions show the ETH was staked directly on the network with a 3.5% annualized return – or $1 million in ETH tokens.

FTX was an early investor in Solana (SOL) and regularly receives a considerable amount of SOL unlocked according to a planned vesting schedule. It held over $1.16 billion worth of the token as of September 2023, per a court filing.

As a result of the staking news, Solana investors gained greater confidence in the future of the project and the token price received a positive boost as well, going from $21.83 to $24.41 within the past 48 hours.

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