Solana (SOL) Relative Capital Flow Hints Further Growth Ahead: Glassnode

As a seasoned analyst with over two decades of experience in the financial markets, I find the current Solana (SOL) rally intriguing and potentially profitable. The data from Glassnode is compelling, showing SOL outperforming both Bitcoin (BTC) and Ethereum (ETH) since the cycle low in November 2022. This growth, coupled with the influx of capital into the asset class, suggests a strong demand for Solana despite the recent market turmoil.

Focusing on Solana (SOL), there’s been a surge of interest due to a recent analysis from cryptocurrency analytics firm Glassnode. As per their report, they’ve noted significant capital flow within the Solana asset. Notably, since the market low in November 2022, SOL has surpassed both Bitcoin (BTC) and Ethereum (ETH) in terms of performance.

Solana Rally Is Not Over

After hitting a low of $9.64 after the fall of FTX Derivatives Exchange, the price of Solana (SOL) rebounded with an impressive growth of 2,143%. Interestingly, according to analytics data over the past 727 trading days, SOL surpassed Bitcoin and Ethereum on 344 occasions. This suggests that the demand for SOL has been relatively strong since the fall of FTX.

Apart from its market value, Solana (SOL) has surpassed Ethereum in terms of popularity among developers, enhancing its status as a leading ecosystem and contributing to the current growth trend.

Over the past two years, my journey with Solana has been nothing short of extraordinary. I’ve witnessed an astounding price surge of over 2,100%, making my investment in this cryptocurrency highly rewarding.

In this write-up, we employ the latest flow metrics for Solana to scrutinize and decipher the hidden financial movements fueling its significant rise.

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— glassnode (@glassnode) December 20, 2024

According to Glassnode’s findings, an influx of capital has been driven into the asset class due to this growth. In terms of percentage growth, Solana (SOL) outperforms both Bitcoin (BTC) and Ethereum (ETH) over 389 out of 727 trading days. This performance indicates a significant increase in liquidity for the Proof-of-Stake (PoS) network, potentially leading to price increases, with a net liquidity boost of approximately $55 billion.

According to the Hot Realized Capital metric for investor inflows, Glassnode reported that Solana’s performance surpasses Ethereum’s for the very first time. Specifically, the former’s Hot Realized Cap has exceeded the latter’s for the first historical instance.

Furthermore, Glassnode utilized the Net Realized Profit/Loss (NRP/L) measure, which serves as an indicator of on-chain movement of capital.

According to data from our analysis tool, the coin has consistently shown a positive trend starting from at least September. In summary, this suggests that even though the Solana price dropped to $175.9 recently, there remains potential for further growth.

Fundamentals Keep Driver Optimism – Solana ETF

A significant contributor to Solana’s (SOL) price growth this year has been the surge in popularity of meme coins. Initially popular among individual buyers, there is growing interest from asset management firms who are advocating for a Solana Exchange-Traded Fund (ETF) tailored towards institutional investors.

As a researcher, I am closely following the developments surrounding the proposed Solana ETF. Firms like Canary Capital, Bitwise, and 21Shares are at the forefront of this pursuit, and there’s reason to hope that regulatory approval might be secured under the Donald Trump administration. This optimism stems from the appointment of Paul Atkins, a known proponent of cryptocurrency regulation, as the nominee for the next US SEC Chairman. With a shift in policy towards digital assets, I am excited about the potential implications this could have on the broader crypto landscape.

It seems that the launch of more cryptocurrency Exchange Traded Funds (ETFs), such as those following Solana, is approaching with the support of Atkins and other industry advocacy groups. If successful, analyst projections suggest that the price of Solana could potentially reach $400.

 

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2024-12-20 23:42