$1 billion Solana unstaked – Crypto.com halts Solana network
Solana (SOL) worth about $1 billion has been made available to be unlocked today. Solana’s Epoch 370 is set to end in a little under 24 hours, and with it will come the unlocking of over 55 million SOL tokens by validators.
Nearly $1 Billion of Solana Is Set to Be Unstaked in 24 Hours
Today, Wednesday, November 9, Solana opened the window for unstaking its epoch 370. Solana validators will have unlocked over 55 million SOL ($945 million) when the current epoch ends in less than 24 hours. The epoch 370 represents 15% of the coin’s supply, marking the second-largest volume of tokens to be unlocked in any Solana epoch.
Right in the middle of considerable tumult in the crypto market, Solana has set its validators to unlock over 54 million SOL. According to current data from Solana Compass the Epoch 370, the current Solana network epoch, is set to end at around 8.30 AM UTC on Nov. 10. Solana epochs refer to a time period, usually two days, when validators lock in their stake on the network. Validators can choose to unlock their stake at the end of each epoch.
This unlocking, worth about $806 million at press time, represents about 15% of SOL’s circulating supply. The website’s dashboard currently shows almost 56 million sol tokens scheduled to be unlocked by validators. This number has risen by over 35 million in a few hours, indicating that more validators are likely choosing to remove their staked tokens from the network. In contrast, only 1.9 million SOL are scheduled to be staked at the end of the current epoch.
Solana’s Epoch 370
An epoch is a group of 432,000 slots for which a validator schedule of Solana’s consensus algorithm is defined. A slot is similar to a transaction block on a blockchain like Bitcoin or Ethereum. Allowing for variation in the time to process transactions, epochs last two or three days.
When transitioning from one epoch to the next, validators can unlock SOL, and new stakers can stake SOL. Staked tokens are delegated to validators responsible for securing the network. Stakers earn rewards based on the size of their stakes and Solana’s inflation rate, which declines as transaction volume increases. Validators also earn rewards at the epoch crossover.
Following the expiration of Epoch 370, which will end in less than 24 hours, the unstaked SOL will be withdrawn by validators. Meanwhile, it remains uncertain if the validators will sell their withdrawn SOL considering the current price performance of the token.
Crypto.com Halts Withdrawals of USDC and USDT on Solana
Less than 24 hours after the SOL unstaking commenced, Solana’s price has gone down about 39%, currently trading at $14.08. SOL’s massive price decline can be tied to the ongoing FTX and Alameda saga in the past few days and fears that the imminent unlocking will see large volumes of SOL dumped on the market. While the general crypto market has taken a hit, Solana’s nosedive is peculiar because of its connection to Alameda.
Amidst all these, Singapore-based Crypto.com has told users via a recent email that it had paused withdrawals and deposits for two popular stablecoins on Solana. The cryptocurrency exchange platform wrote to its customers today to notify them that all deposits and withdrawals for Tether’s USDT and Circle’s USDC have been suspended on the Solana network. Although the email did not explain why the exchange chose to suspend these transfers, the pause has been effected immediately.
Crypto.com is boycotting Solana, advising its users to use alternative networks. “You may withdraw USDC and USDT at any time using other supported networks, including Cronos and Ethereum,” the email read.
