Spot ETF Inflows Highlight Support for Solana
Bitcoin’s buying momentum on Tuesday lifted major altcoins, yet Solana’s market health shows signs of stress. Analysts point to retreating liquidity and ongoing market uncertainty as key factors affecting the network.
Realized Losses Signal Contraction
Glassnode, an on-chain analytics platform, highlighted that Solana’s 30-day average realized profit-to-loss ratio has remained below one since mid-November. A ratio below one indicates that realized losses exceed profits, suggesting liquidity has contracted to levels typically seen in bear markets.
Altcoin Vector commented, “Solana is under a full liquidity reset,” noting that similar signals have previously marked the start of new liquidity cycles and triggered bottoming phases. The platform further noted, “If the pattern repeats April’s setup, reignition could take around four more weeks, lining up with early January.”
Market Dynamics and Structural Support
SynFutures COO Wenny Cai explained to Decrypt, “The reset is being driven by realized losses prompting sell-offs, a decline in futures open interest, market-makers pulling back, and liquidity fragmenting across trading pools.”
Despite near-term volatility, some structural support is present. Persistent outflows of Solana from exchanges have reduced readily available supply, while spot Solana ETFs continue to attract capital, accumulating $17.72 million in net inflows this week, close to last week’s $20.30 million, according to SoSoValue.
Ryan Lee, chief analyst at BitGet, observed, “This presents an opportunity for strategic accumulation and network upgrades, fostering long-term resilience and innovation in the Solana ecosystem.”
While the mid- to long-term perspective remains cautiously positive if macroeconomic pressures ease, Solana’s immediate trajectory is susceptible to shocks, reflecting the tension between structural support and ongoing liquidation risk. Analysts continue to monitor liquidity indicators as the network navigates this reset phase.
