SLX has been dropping sharply recently, now around 0.2u, down nearly 60% this week.

First, let's talk about what it is. Solstice is an on-chain yield protocol that brings institutional-grade wealth management strategies on-chain, making them accessible to ordinary users. The protocol's total value locked has exceeded $500 million—it's not a vaporware project.

It launched earlier this year, peaked at 0.66u, and saw heavy buying from retail investors in South Korea, with trading volume once being very high.

But now it faces a very real problem: on July 9th, the day after tomorrow, another batch of tokens will be unlocked and enter the market. This is the second unlock since the launch. New supply means new selling pressure, and many people are exiting early before the unlock, which is why it's been falling so badly recently.

If the selling pressure is absorbed after the unlock, it could stabilize around 0.2u, and then we might see a rebound back to around 0.35u.

If it continues to fall after the unlock, there isn't much meaningful support below, and it could even drop back to the lows seen shortly after launch.

The key now is to see how the market absorbs the unlocked tokens after July 9th. I won't enter easily before the unlock.

$SLX

‍#SLX