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Solana News: SOL Net Inflow to Centralized Exchanges Hits $227M, Raising Concerns About Bullish Momentum

The Solana (SOL) market has witnessed its highest net inflow to centralized exchanges since March 2024, casting doubts on its bullish technical outlook despite recent price recovery. According to data from Coinglass, over $227 million worth of SOL was transferred to exchanges last week, a move reminiscent of patterns observed during the token's prior price peaks.Key InsightsLargest Inflow Since March 2024:Centralized exchanges recorded $227.21 million in SOL net inflows, the most significant spike since March, when SOL hit a peak of $200 before entering a prolonged range-bound phase between $120 and $200.Potential for Selling or Derivatives Strategies:Large token movements to exchanges often indicate preparation for selling or utilization in derivatives trading and decentralized finance (DeFi) activities. This influx suggests caution among investors, clouding the bullish outlook.Technical Analysis Signals Uncertainty:Despite recent price resilience and a bullish "throwback" pattern indicating potential for revisiting the November high of $260, the inflows may temper the token's upward momentum.Options Market Reflects Lack of Bullish SentimentData from Amberdata reveals subdued optimism in SOL's options market. Traders have been net sellers of call options, indicating reduced appetite for upside speculation. This contrasts with the positive sentiment expected during a sustained rally, further amplifying concerns about price trajectory.Historical Context and ImplicationsThe current situation mirrors the March 2024 scenario, where a similar spike in exchange inflows preceded a price plateau. If history repeats, SOL could face challenges sustaining its bullish momentum, potentially stalling near key resistance levels.What to WatchPrice Movements Near $260:A successful break above this level would reaffirm bullish momentum, while failure could trigger a consolidation phase.On-Chain Metrics and Derivatives Activity:Monitoring exchange balances and options trading will provide deeper insights into investor sentiment.Market-Wide Trends:Broader crypto market movements and macroeconomic factors, including Federal Reserve policies, could influence SOL’s performance.While SOL has shown resilience with its recent price action, the significant exchange inflows highlight underlying market caution, suggesting traders may need to closely monitor upcoming movements for clear signals, according to CoinDesk.
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Solana Co-Founder Criticizes Ethereum Community's L2 Views

According to Odaily, Solana co-founder Anatoly Yakovenko has expressed his disagreement with the Ethereum community's perspective that Layer 2 (L2) solutions are the most sustainable approach for blockchain scalability. Yakovenko argued that while the logic might seem sound, it is fundamentally flawed. He stated that having multiple L2 solutions is unnecessary, as a single L2 capable of parallel execution could utilize all available blobspace and handle every use case. Yakovenko emphasized that there are not unlimited useful smart contracts or execution environments. He noted that there are only about six significant underlying smart contracts. He also pointed out that the optionality for developers is infinite, which he believes is unnecessary. In fact, he argued that any developer optionality that increases business risk is negative, citing the ERC20 interface as an example. He questioned whether additional components like extra sequencers, L2 multisigs, governance systems, and VM customizations add to business risk. In a follow-up comment, Yakovenko added that across all blockchains, the primary activities people engage in today involve tokens, NFTs, and automated market makers (AMMs). He mentioned that other activities might include bonding curves, lending, oracles, central limit order books (CLOBs), and perpetuals. However, he has not observed these activities becoming decisive drivers for product-market fit.
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Solana Co-Founder Faces Lawsuit Over Alleged Staking Rewards Misuse

According to Cointelegraph, Solana co-founder Stephen Akridge is facing legal action from his ex-wife, Elisa Rossi, who has accused him of secretly profiting from her Solana (SOL) tokens through staking rewards. The lawsuit was filed in San Francisco’s Superior Court on December 24, alleging that Akridge earned millions of dollars in staking rewards from tokens that Rossi claims belong to her, without her knowledge. The complaint outlines that Akridge, who was a principal engineer at Solana Labs after co-founding the company in 2018, is now the CEO of the cybersecurity firm Cyber Grant. Rossi's lawsuit claims that their divorce agreement in March was supposed to divide their SOL holdings. However, she alleges that Akridge exploited her lack of expertise in cryptocurrencies to maintain control over the tokens and continue earning staking rewards. Rossi's complaint further alleges that Akridge only granted her Solana wallet authority over three accounts containing the tokens, allowing him to continue staking them secretly and earning rewards until she discovered the situation in May 2024. While the exact number of SOL tokens and the amount allegedly misappropriated are redacted in the complaint, it is noted that the sum exceeds $25,000. An accompanying filing highlights the significant sums involved, requesting parts of the lawsuit to be sealed. The lawsuit also mentions that Solana reached an all-time high of $263 last month and has gained over 80% this year, trading at $194. This rise is attributed to Solana hosting several popular crypto trends in 2024, including memecoins. Solana users can earn additional SOL through staking, a process where SOL is locked up and used to validate blockchain transactions, with rewards given in SOL. Rossi claims that between May and December, she sent numerous text messages to Akridge regarding the allegedly stolen staking rewards. The suit alleges that Akridge showed no intention of returning the rewards, reportedly laughing at Rossi and dismissing her attempts to reclaim them. Akridge has not responded to requests for comment sent via LinkedIn, and Cyber Grant has been contacted for a statement. Information regarding Akridge’s legal representation was unavailable at the time of writing.
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