Analytics firm Glassnode has recently pointed out that Solana’s momentum on the monthly time frame is showing signs of weakening when compared to Bitcoin and Ethereum. The firm has been analyzing the Realized Cap metric on the social media platform X, which tracks the price at which each coin was last moved to determine the number of holders in profit or at a loss.
Glassnode highlighted the monthly percent change in realized cap for Bitcoin, Ethereum, and Solana, stating that this metric serves as an indicator of the rate and direction of capital inflows or outflows for these assets. During the recent market downtrend, the monthly rate of change in Realized Cap for Solana has dropped below both Bitcoin and Ethereum, indicating a faster decline in momentum for Solana compared to the other two assets. The current monthly Realized Cap Change stands at +10.87% for Bitcoin, +5.43% for Ethereum, and +2.19% for Solana.
Despite this decline in momentum, Glassnode had previously noted that Solana has maintained a positive net capital inflow since early September 2023, with only minor periods of outflow. This consistent influx of liquidity has played a key role in stimulating growth and price appreciation for Solana, reaching a peak inflow of $776 million of new capital per day.
As of the latest data, SOL is trading at $186.12, with a 1.5% decrease in the past 24 hours. It remains the sixth-ranked cryptocurrency by market capitalization.
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Image Source: Glassnode/X
In conclusion, Glassnode’s analysis sheds light on the shifting momentum of Solana compared to Bitcoin and Ethereum, emphasizing the importance of tracking capital inflows and outflows in the crypto market. Despite the recent decline in momentum, Solana continues to attract new capital and drive price appreciation, showcasing its resilience in the volatile market environment.