Solana has achieved significant price appreciation and liquidity growth, outperforming Bitcoin and Ethereum, with positive capital inflows continuing since September 2023.
According to Santiment’s analysis, Solana has shown steady growth by maintaining positive net capital inflows since September 2023. While there were only limited capital outflows during this period, Solana’s daily capital inflows reached a remarkable peak of $776 million.
Since the market bottom in November 2022, Solana has managed to outperform Bitcoin and Ethereum in terms of price appreciation and capital inflows. The continuous positive capital inflows have generated a net liquidity increase of $55 billion in total, strongly supporting the price increase.
So what's next for Solana?
Given the recent profit taking and supply breakdown, concerns about overheating in the Solana market have begun to grow. Currently, the Solana (SOL) price is consolidating between the long-term MVRV average and the +0.5 standard deviation level. This suggests that the market is heating up but has the potential to rise further before reaching the +1 standard deviation level.
If Solana price breaks this level, the profit levels for average investors will be quite high, which could trigger profit realization and supply dispersion. Historically, such levels have often been associated with macro-level top signals in the markets. However, this suggests that Solana's growth potential continues in the current cycle.
Analysts predict that the continued steady capital inflows into Solana will continue to support the development of the ecosystem and its price growth. These positive developments in the cryptocurrency markets ensure that Solana continues to be an attractive option for investors.