As a result of the liquidation of approximately $5 million of Marinade Finance tokens, and possibly more than $8 million, the price of mSOL diverged from its relationship with SOL, and it became possible to purchase it at a discount. At one point, the mSOL rate fell by more than 18%, but then partially recovered.
On December 12, 2023, the mSOL token, which should trade at a premium, lost its SOL peg. Its price fell more than 18% to $58.81 at the moment, according to TradingView .
The likely cause of the drawdown is an unknown whale that liquidated mSOL tokens worth about $5 million:
According to some reports, the holder sold even more assets - in the amount of $8 million. Presumably, he withdrew the funds in USDT.
This led to a drawdown in the exchange rate and a wave of liquidations. The ratio of mSOL to SOL decreased from 1.15 to 0.99. The price of the asset collapsed from $83.72 to $58.81. However, it then recovered to above $73, according to TradingView:
Note that mSOL is a token that users receive when staking SOL through the Marinade Finance protocol.
The address of a whale was posted online , which influenced the rate drawdown. At the time of writing, it contains $9,581 in assets.
It is noteworthy that some users noted the lack of reaction to what happened from the administration of Marinade Finance. One of the community members posted a screenshot of the mSOL price chart in SOL, on which there was no trace of depeg:
We previously covered the reasons for the rapid recovery of the Solana ecosystem after a significant drawdown in 2022. Experts suggest that by 2030 the SOL rate will reach $3211.
