• Solana has risen more than 2,000% since its 2022 lows following the FTX collapse.
  • SOL outperformed both Bitcoin and Ethereum in trading volumes for over a year since the decline.
  • Solana has maintained a positive net capital inflow since September 2023, indicating that most token holders are in profit.

Solana (SOL) is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.

SOL outperforms Bitcoin and Ethereum with $776 million in capital inflows daily

Solana has seen incredible progress in 2024 marked by new all-time highs and increased activity on its blockchain.

Solana's rebound has been remarkable, especially with its growth after plunging to a low of $9 following the collapse of FTX in 2022. Since then, SOL has risen over 2000%, with its price outperforming Bitcoin and Ethereum, according to Glassnode's report.

The report shows that Solana has surpassed the two giant cryptocurrencies in 344 out of 727 trading days since the 2022 event.

BTC/SOL/ETH Price Performance

BTC/SOL/ETH Price Performance. Source: Glassnode

Likewise, Solana witnessed more capital inflow during the same period, using the relative Realized Cap change as a measuring tool.

This suggests that SOL has taken in fresh capital and liquidity, indicating increased demand for the asset among investors.

Glassnode stated that this new band of investors bringing in capital is the major driver of Solana's growth.

A key reason for this growth in new investors is the surge in meme coin activity the Solana blockchain experienced during the year. With SOL serving as the base currency for settling these meme coin transactions on the Solana network, high demand pushed it to a new all-time high of $263 on November 23.

The report also noted that Solana has maintained a positive net capital inflow since September 2023, with $776 million worth of new capital flowing into its network daily.

Adding to that, Glassnode highlights the holder cohort with the highest profit-taking volume since January 2023. 

Tokens held from 1 day-1 week, 1 week-1 Month and 6-12 months all realized profits of $13.7 billion, $14 billion and $15.7 billion, respectively. 

This connotes equality of market share among these classes of holders, which accounts for 51.6% of all profit realized.

Furthermore, the MVRV ratio — a metric that compares market capitalization to realized capitalization — remains within the +0.5 standard deviation range. SOL: MVRV Extreme Deviation Pricing Bands

SOL: MVRV Extreme Deviation Pricing Bands. Source: Glassnode

"This suggests the market is relatively heated, but also suggests the potential for further room to run before the profit held by the average investor reaches its extreme band of +1σ, enticing a flurry of profit taking and distribution," wrote Glassnode.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

IRS says crypto staking should be taxed in response to lawsuit

IRS says crypto staking should be taxed in response to lawsuit

The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.

More Cryptocurrencies News
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.

More Solana News
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.

More Ethereum News
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election. 

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP