Solana (SOL) Price Drops Below $170 as FTX $5B Payout Triggers $236M in Unstaking

Solana (SOL) price tumbled 4% to hit $169 on Friday, May 16, after bankrupt crypto exchange FTX confirmed a $5 billion creditor payout.

Solana price is bearing the brunt of bearish pressure on Friday, now trading below $170. This follows FTX confirming its $5 billion payout to creditors, which also triggered a massive unstaking of SOL tokens.

Solana price analysis

Solana price dropped 4% to hit $169 on Friday, May 16, following news that bankrupt crypto exchange FTX will distribute $5 billion in digital assets to claimants.

On Thursday, May 15, FTX’s estate confirmed it would begin distributing the funds via BitGo and Kraken, with settlement expected within 1–3 business days. The payout follows a previous one in July, where FTX paid out $736 million to small creditors.

FTX payouts align with 1.4B SOL staking withdrawals

The new lows in Solana price come as several Layer-1 tokens saw their prices decline. According to StakingRewards, over 1.4 million SOL was unstaked in the past seven days.

This move likely includes large portions held by FTX, which has been working to liquidate assets. At $169 per token, the un-staked SOL is valued at approximately $236 million.

Such large token movements usually generate sell pressure, especially if the assets enter exchanges or OTC desks for liquidation.

This sell-off appears part of a broader downturn in Layer-1 tokens. Coingecko data shows Ethereum falling 2.7% to $2,500, while XRP and Cardano saw 4% losses each.

The synchronized decline suggests macro-driven sell pressure, especially with investors locking in gains ahead of FTX’s payout introducing additional volatility risks.

Bitcoin rally and ETF optimism could help stabilize markets

Despite the drop in SOL, Bitcoin price has remained above $100,000 for seven consecutive trading days—the first such instance since January 2025.

This stability could help contain the broader market panic. In past instances, BTC resilience has usually stabilized sentiment in large-cap altcoins such as Solana.

Moreover, PolyMarkets data shows an 82% probability of SEC approval for altcoin ETFs by June 16. This could position Solana as a preemptive buy for strategic traders, especially if the SEC approves altcoin ETFs.

Critical week ahead for Solana price

The 4% drop in SOL price from Thursday reflects both internal sell pressure and broader market rotation. FTX’s $5 billion distribution and the associated unstaking remain the dominant narratives this week.

For bulls, reclaiming $170 and remaining above $150 is crucial to sustain momentum. With ETF optimism still in play and Bitcoin holding firm, a rebound might occur if new market demand drivers emerge to offset the Solana sell-offs.

Until then, Solana price remains vulnerable to further downside risk, especially if large wallet holders join the sell-off.