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

Beyond ETF hype, Solana (SOL) is under the spotlight following a new report from crypto analytics platform Glassnode. Per the report, Glassnode highlighted the movement of capital across the Solana asset. Glassnode pointed out that since the cycle low in November 2022, the coin has outperformed both Bitcoin (BTC) and Ethereum (ETH).

Solana Rally Is Not Over

After dropping as low as $9.64 following the collapse of FTX Derivatives Exchange, SOL price made a comeback with 2,143% growth. The analytics firm hinted that of the past 727 trading day, SOL outperformed Bitcoin and Ethereum on 344. This proves the coin had a reasonably high demand since FTX’s collapse.

Beyond price action, SOL also overtook Ethereum as a top ecosystem for developers, complementing the overall boom.

The last two years have been remarkable for #Solana, recording a staggering price appreciation of +2,143%.

In this article, we utilize the new breakdown metrics for Solana to inspect and understand the underlying capital flows responsible for the dramatic ascent.

Discover more… pic.twitter.com/RP956L1u8R

— glassnode (@glassnode) December 20, 2024

As Glassnode revealed, this growth has forced the an influx of capital into the asset class. By percentage growth, SOL now have more growth in this metric than BTC and ETH across 389/727 trading days. Overall, the Proof-of-Stake (PoS) network has seen a net liquidity increase of $55 billion, setting it up for price appreciation.

Using the Hot Realized Cap metric for capital flow among new investors, Glassnode also revealed that the protocol is outpacing Ethereum. It noted that for the first time in history, the Solana Hot Realized Cap has flipped that of Ethereum.

In addition, Glassnode also employed the Net Realized Profit/Loss metric, a benchmark for on-chain capital flows.

As revealed by the analytics platform, the coin has maintained positive flow since at least September. Concluding, it pointed out that despite the recent slip that pushed SOL price down to $175.9, there is room for more growth.

Fundamentals Keep Driver Optimism – Solana ETF

One of the most important factors that drove the price of SOL this year was the explosion of memecoins. While this products focused on the retail aspect of the market, asset managers are now pushing for a SOL ETF product for institutional investors.

Canary Capital, Bitwise and 21Shares are among the firms pioneering this Solana ETF pursuit. Notably, there are reasons to believe that this product will get approval under the Donald Trump administration. Amid the shift in policy, the President-elect has nominated Paul Atkins, a pro-crypto regulator, as the next US SEC Chairman.

With Atkins and several industry lobby groups, more crypto ETFs including that tracking Solana are imminent. If achieved, SOL price may soar to $400 as projected in a previous price analysis.