What happened
Just when it seemed the crypto market was hitting a bottom, the value of some of the most well-known tokens on the market dropped again on Wednesday. There wasn’t earth-shattering news, but some instability and potentially large sellers in the market are leading to the drop.
![Dogecoin [DOGE] to rise beyond 40%? Whale activity may spur rally](https://crypto.newswireservice.net/wp-content/uploads/2023/02/doge-wale-1000x600-120x86.jpg)
Solana‘s (SOL -12.66%) was the most notable move, falling 6.8% as of 1:20 p.m. ET. The token dropped below $10 briefly and is now down 16.6% in the last week. Dogecoin (DOGE -477.94%) was down 3% over the last 24 hours and The Sandbox (SAND -6.49%) was down 4.6%.
So what
The news from FTX continues to come out, including today’s news that Sam Bankman-Fried borrowed money from Alameda Research to buy shares of Robinhood Markets. That’s one of the most valuable pieces of collateral in FTX’s bankruptcy proceedings and there will likely be a fight over the 7.6% stake in the online broker.
Funds in Alameda wallets are also starting to move, according to on-chain data. Bankman-Fried was released on a $250 million bond just a few days ago and now wallets he once controlled are moving funds around. Solana may be dropping as a result because Alameda is a major holder of the token and investors often front-run a sale before it actually takes place.
It’s a tangential cryptocurrency, but Bitcoin miner Argo Blockchain will also avoid bankruptcy after getting a $100 million bailout. If a Bitcoin company needs a bailout, smaller tokens and blockchains may be in trouble, too.
The selling of Dogecoin and The Sandbox is likely related to stronger blockchains and ecosystems running into problems. Investors are fleeing to safety right now and while there aren’t many safe places in crypto, a little-used metaverse and a meme coin are probably not the safest of places for your money.
Now what
Cryptocurrencies are not only going through incredible volatility right now, but volume is also down and the number of buyers is declining. This can lead to rapid price drops on seemingly…
![Dogecoin [DOGE] to rise beyond 40%? Whale activity may spur rally](https://crypto.newswireservice.net/wp-content/uploads/2023/02/doge-wale-1000x600-350x250.jpg)
