Binance Reduces Solana Holdings

• Binance reduced its Solana holdings from 27M to below 16M in five months.
• After months of selling, data now suggests Binance is buying Solana again.
• Traders now wait to see if accumulation leads to a price recovery soon.

From the beginning of August 2024, the decline of Binance varied from an almost 27M volume of holdings to less than 16M by the start of 2025. It is clear from the chart that continuous selling pressure over several months, with a marked decrease in November and December, resulted in the stock undergoing the most prolonged sell-off in recent times, fueling market fears, including FUD (fear, uncertainty, and doubt) narratives, which inspired panic selling. However, recent information indicates a turn of events as Binance has seemingly begun repurchasing the same token at a lower price.

> #Binance $SOL holdings since August 2024. Constant selling until yesterday. Appears they have begun repurchasing at their self-created low. They will end up with more $SOL than they started with because they have now bought all the retail $SOL panic sold and dumped from FUD and… pic.twitter.com/6adWQDTJFv — MartyParty (@martypartymusic) February 27, 2025

Persistent Selling Leads to Major Supply Reduction

The steady decline in Binance’s Solana reserves indicates prolonged liquidation, with the most aggressive selling occurring between September and December 2024. By early 2025, the exchange’s holdings had fallen below 16M tokens, marking a significant 40% reduction in five months. This sharp drop suggests that many retail traders exited their positions during the downtrend, reacting to market uncertainty.

Despite the decline, market behavior now hints at a strategic accumulation phase. The slight uptick in holdings suggests Binance may be absorbing panic-sold $SOL at discounted prices. This is a recurring pattern observed in previous cycles, where large entities reduce supply during heightened volatility only to reacquire later.

Accumulation Phase Sparks Speculation

The recent stabilization in Binance’s Solana holdings raises questions about a potential shift in strategy. If the exchange has indeed started buying back $SOL at lower prices, this could signal an upcoming reversal. Historically, similar accumulation patterns have preceded price recoveries as liquidity returns to the market.

Retail traders who panic-sold may have played into the hands of larger market participants looking to capitalize on discounted prices. With Binance now holding a significant amount of $SOL, speculation grows over whether the exchange will continue accumulating or if another sell-off phase will follow.

Market Implications and Outlook

It is difficult to ascertain the outcome of Binance’s strategy on Solana coin value in the long run; however, generally, there is periodic consolidation after a rapid drop in these situations. If the exchange keeps stacking $SOL, the network will receive more fine support, and prices may potentially appreciate due to this movement. Otherwise, if the market turns and the exchange reopens its $SOL purses, there could be downward pressure on prices.

For now, the market is closely watching Binance’s actions to influence Solana’s trajectory. With past cycles showing similar sell-off and accumulation phases, traders will be keen to see if history repeats itself or if a new trend emerges in 2025.