$200M in SOL tokens are unlocking on the 4th of April

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$200M in SOL tokens are unlocking on the 4th of April in the biggest single day unlock until 2028. These four addresses which will have their SOL tokens unlocked, staked 1.397M SOL tokens, worth $37.7M, way back in April 2021 when SOL was trading at only $27. Today, they’re up almost just over 5.5x on their original stake.

Large-scale token unlocks like this are significant market events that are watched closely by traders. They represent a sudden and massive increase in the liquid, sellable supply of a token. For early stakeholders who are seeing a 5.5x return on their original investment, the incentive to "take profit" is exceptionally high, which can introduce major sell-side pressure.

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As of early morning on 4th April, two of the original four accounts, 2UhUo and HUJBz, have unstaked a collective 425.27K SOL tokens, worth almost $50M. These tokens were subsequently distributed to a series of other Solana addresses which then deposited the tokens into various centralized exchanges including Binance, Coinbase, Kraken and Deribit, presumably to be sold into the open market.

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The on-chain actions of these addresses confirm the market's concerns. Unstaking is the first necessary step to move the tokens, and depositing them onto centralized exchanges is the final step before a sale. By distributing the $50M across multiple, high-liquidity exchanges, these entities are signaling a clear intent to liquidate their holdings and realize their significant gains, forcing the market to absorb this new wave of supply.