The Deribit Options Market for the Solana Solana token has become active, the whales engaging in low -hand bets while the price of the token continues to decrease before an imminent unlocking of several billion dollars.
Last week, Sol Block transforms totaling $ 32.39 million in notional value crossed the strip on a deribit, representing almost 25% of the activity of total options of $ 130.74 million. The rest of the activity included screen trades, according to Amberdata. This is the second highest proportion of block transactions to the total registered activity.
A “block trade” in the options refers to a significant and negotiated negotiated options transaction between two parties involving a large number of contracts. These professions, generally associated with the activity of whales, are executed over the counter and outside the ordinary order book, then reserved on the stock market, allowing a minimum impact on market prices.
The options are derivative contracts which give the buyer the right but not the obligation to buy or sell the underlying assets, in this case, soil, at a predefined price at the latest at a specific date. A call option gives the right to buy, while a sale option gives the right to sell. On Deribit, which represents more than 85% of the global Crypto Options activity, an option contract represents 1 soil.
The Spike last week in Sol Block Trades presented a preference for put options, which traders use to cover or take advantage of a potential price slide.
“Almost 80% of the volume of trade in blocks has been concentrated in power contracts. Compared to only 40% put for the BTC and 37.5% for ETH during the same period of time,” said Greg Magadini, Director of Amberdata derivatives.
Whale demand for put options occurs because the soil prospects seems dark after the price slide from 46% to $ 160 in just over five weeks. The activity on Solana’s blockchain, which became a special place for merchants even last year, culminated with the launch of the Trump token on January 17, three days before Donald Trump was inaugurated as president United States
Since then, the number of daily transactions on Solana and the daily volume accumulated on decentralized trade based in Solana have decreased considerably, according to Artemis data. This weakened the bullish case for floor.
In addition, the unlocking of an imminent ground token on January 1 presents an important headwind, by Deribit’s Asia Business Development, the Lin Chen commercial development head.
“Solana (soil) will have a major token unlocking event on March 1, releasing 11.2 million ground tokens, worth around 2.07 billion dollars. This represents 2.29% of the supply Total.
Chen explained that large unlocking could reproduce market volatility because it represents almost 59% of the daily volume of trading at the ground point. Consequently, it is natural to see a lot of cover flows in put options in anticipation of a potential slide of soil price.
“Many traders would also take this long -flight occasion[atility] To generate a good yield, “noted Chen.
