Solana Crushes The Competition: Bitcoin And Ethereum Defeated In The Trading Arena

Can we seriously compete with King Bitcoin and his faithful Ether? Absolutely. Solana, like a bold outsider, has been delivering impressive performances. After a dizzying drop post-FTX, this altcoin has rebounded with breathtaking growth and increased popularity among investors. The latest study from Glassnode reveals astonishing figures regarding the dominance of Solana’s crypto in terms of capital inflows and trading volumes, far surpassing BTC and ETH in certain niches.

Solana: figures that command respect

Since the collapse of FTX in 2022, Solana has shown a rise of over 2,000%, an achievement that places it far ahead of Bitcoin and Ethereum in terms of price performance and trading volumes. According to the Glassnode report, Solana outperformed the two market giants for 344 days out of 727, relying on steady activity and massive capital inflows.

Here are some key figures to grasp the scale of the phenomenon:

• $776 million of incoming capital every day;
• A price explosion up to a peak of $263 in November 2023;
• More than 51% of profits realized by diversified wallets, ranging from a few days to several months of holding.

Moreover, the MVRV ratio, an indicator measuring the ratio between market capitalization and realized capitalization, shows that the crypto market is still far from its extreme limits, leaving room for potential continued growth.

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 indicates, “the market is relatively heated, but there is still room before investors rush to massive profit-taking“.

The crypto markets under its grip

The spectacular rebound of the price of Solana is not only based on raw figures: the ecosystem itself has benefited from a notable increase in blockchain activity. The explosion of transactions related to memecoins in 2024 has significantly contributed to the demand for SOL, the flagship token of the ecosystem.

This dynamic has not only attracted investors but has also served as a catalyst to reach unprecedented heights.

Furthermore, Solana has distinguished itself with remarkable consistency. Since September 2023, its net inflows have remained positive, a sign that investor interest is unwavering. This new momentum, fueled by growing demand, reinforces Solana’s position as the leading altcoin against BTC and ETH, which sometimes struggle to keep pace.

To conclude, despite a recent loss of $1.1 billion in TVL in December, let’s hope this does not hinder Solana’s impressive journey, which continues to challenge the leaders of the crypto market.