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Large investors are increasingly engaging in bearish options strategies on Deribit as Solana’s (SOL) price declines ahead of a significant token unlock event.
Solana’s options market on Deribit has seen a surge in activity, with whales placing substantial bearish bets as SOL’s price continues to fall in anticipation of an upcoming multi-billion dollar token unlock. In the past week, block trades in SOL options amounted to $32.39 million, accounting for nearly 25% of the total options activity of $130.74 million on the platform. Notably, the majority of these block trades involved put options, which are typically used to hedge against or speculate on price declines.
The impending unlock, scheduled for March 1, is set to release approximately 11.2 million SOL tokens, valued at around $2.07 billion, into the market. This significant increase in circulating supply has raised concerns among investors about potential downward pressure on SOL’s price.
Adding to the bearish sentiment, Solana’s on-chain activity has experienced a slowdown, with decentralized exchange (DEX) volumes on the network decreasing by 36.35% over the past week. This decline in activity further exacerbates concerns about the network’s growth and the token’s valuation.
In response to these developments, large investors are increasingly turning to Deribit’s options market to implement bearish strategies, aiming to capitalize on or protect themselves from the anticipated price decline. The heightened activity in put options suggests a growing expectation among market participants of continued downward movement in SOL’s price as the token unlock date approaches.
As the March 1 unlock event nears, traders and investors will be closely monitoring Solana’s price dynamics and on-chain activity to assess the potential impact of the increased token supply on the market.
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