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Solana (SOL) Has Room for Growth
Solana’s capital inflows have been impressive since September 2023, with the daily peak reaching an astonishing $776 million this year. As a result, Solana’s realized cap has seen significant growth, reflecting the total value of coins in circulation based on their most recent transaction prices.
From January 2023 onward, Solana’s realized cap increased from $22 billion to a remarkable $77 billion, representing a substantial $55 billion increase in liquidity. This data is a testament to the growing demand for Solana and its potential for future growth.
Investor activity analysis indicates that both short-term and long-term holders have contributed to profit-taking during this period. Coins held for periods ranging from one day to one week, one week to one month, and six months to one year have been contributors to sell-side pressure, each accounting for a significant portion of realized profits. However, this distribution suggests that Solana appeals to a diverse investor profile.
Despite profit-taking, Glassnode’s analysis shows that investors have yet to reach the unrealized profitability levels typically observed before long-term market peaks. This implies that Solana’s value may still have room to grow further in the ongoing market cycle.
As of now, SOL trades at $187.83, down 4.84% after a remarkable three-day performance culminating in a run above $201 on Christmas Day. To confirm its momentum shift to bullish, Solana needs to secure a full-body close above $200.
In conclusion, the data suggests that Solana still has room for growth and may continue to rally in the ongoing market cycle.
Source: thecryptobasic.com
