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Solana surges 2143% driven by $55B capital inflows

Solana surges 2143% driven by $55B capital inflows

GrafaGrafa2024/12/27 05:50
By:Mahathir Bayena

Solana (CRYPTO:SOL) has seen remarkable growth over the past two years, with a price increase of 2,143%, according to a recent report by Glassnode researchers Ukuria OC and Cryptovizart.  

This analysis highlights the asset's recovery since its low of $9.64 in November 2022, driven largely by substantial capital inflows.  

The Glassnode report indicates that Solana has outperformed both Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) during this period, with net liquidity increasing by $55 billion.  

“After plummeting to a shocking low of just $9.64, Solana has made a remarkable recovery, recording an astonishing increase of +2,143% over the last 2 years,” the report states.  

It also notes that Solana has outperformed its competitors on 344 out of 727 trading days since the FTX collapse.  

The influx of capital into Solana has surpassed that of Ethereum for the first time before the start of 2024, indicating growing investor confidence.  

“During the same time period, the significant inflow of capital has allowed Solana to accrue over +$55B in USD liquidity,” Glassnode researchers explain.  

This increase in liquidity has helped stabilize Solana's market position while providing opportunities for further growth.  

The report also reveals that more than 50% of sell-side pressure comes from coins held by short-term investors and those aged 6 to 12 months, reflecting a balanced profit distribution among investors.  

Using the Market Value to Realized Value (MVRV) ratio, Glassnode suggests that while Solana's market is relatively heated, it is not yet at extreme levels.  

This positioning implies potential for continued growth before entering a phase that could trigger widespread profit-taking.  

Overall, Solana's recovery story is marked by significant capital inflows and expanding adoption, positioning it as a key player in the cryptocurrency market.

At the time of reporting, the Solana price was $187.99.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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