[Analysis] "Options Traders Increase Bearish Bets on Solana... Impact of Large-Scale Token Unlock"

Bearish betting on Solana (SOL) has surged in cryptocurrency options exchanges.

According to CoinDesk on the 23rd (local time), Solana block trades (large-scale transactions) on the options exchange Deribit reached $32.39 million last week. This represents 25% of the total options trading volume for the week, with the majority being put option trades.

Greg Magadini, head of derivatives at Amberdata, stated that "80% of Solana block trade volume was in put options," adding that "during the same period, put option ratios for Bitcoin (BTC) and Ethereum (ETH) were only 40% and 37.5% respectively."

The media reported that "whales mainly traded put options to either hedge against or profit from Solana's price decline," noting that the upcoming large-scale token unlock of Solana also influenced this trend.

Lynn Chen, Head of Asia Business Development at Deribit, explained that "11.2 million SOL (2.29% of total supply) is scheduled for token unlock on March 1st (local time)," adding that "this amount represents 59% of Solana's daily spot trading volume, suggesting significant selling pressure."

Meanwhile, put options represent the right to sell an asset at a predetermined strike price. It is generally known that selling options strategies are advantageous when the market is moving sideways or showing a moderate upward trend.