FameEX Hot Topics | Glassnode: Capital Inflows Propel Solana’s Recovery

Solana (SOL) has experienced exceptional growth over the past two years, recording a staggering 2,143% price increase, according to a comprehensive analysis by Glassnode researchers Ukuria OC and Cryptovizart.

The Glassnode report delves into Solana’s impressive recovery, its competitive edge against major cryptocurrencies, and the key drivers behind its growth. Since hitting a cycle low of $9.64 in November 2022, Solana has consistently outperformed Bitcoin (BTC) and Ethereum (ETH). This resurgence has been fueled by substantial capital inflows, which contributed to a net liquidity increase of $55 billion during the period. The report emphasizes Solana’s remarkable 2,143% price surge, underscoring its strength in the crypto market.

Glassnode’s data highlights Solana’s dominance, outperforming Bitcoin and Ethereum on 344 out of 727 trading days since the collapse of FTX. This steady performance reflects robust demand and growth potential for the asset. Capital inflows have been a critical factor in Solana’s comeback, with metrics such as Net Realized Profit/Loss and Hot Realized Cap showing sustained investor interest. For the first time, capital inflows into Solana surpassed Ethereum just before 2024, reinforcing its expanding market presence and stability.

The report further notes that Solana’s strong capital inflows helped it accumulate over $55 billion in USD liquidity, pushing its Realized Cap from $22 billion to $77 billion. Coins held by short-term investors and those aged 6 to 12 months account for more than 50% of sell-side pressure. Glassnode highlights this balanced profit distribution as a sign of growing confidence among a diverse investor base, which supports sustained market expansion.

Using the Market Value to Realized Value (MVRV) ratio, Glassnode’s research indicates Solana’s market is currently heated but not excessively overvalued. Positioned between the mean and +0.5 standard deviation band, Solana still has room for additional growth before reaching levels that might trigger widespread profit-taking. This outlook signals ongoing resilience and bullish potential for the asset as investor confidence continues to rise.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.