Analytics firm Glassnode reports that Solana (SOL) is experiencing decreased momentum compared to Bitcoin (BTC) and Ethereum (ETH) on a monthly basis. Their analysis highlights the Realized Cap metric, which helps gauge the price movement of each coin and indicates the profitability of holders. Recently, Solana’s Realized Cap change fell to just 2.19%, trailing behind Bitcoin’s 10.87% and Ethereum’s 5.43%. Despite this decline, Solana has seen a positive net capital inflow since early September, peaking at $776 million in daily inflows. Currently trading at $186.12, SOL has decreased by over 1.5% in the last 24 hours.
Analytics firm Glassnode has released a new report examining the current Market performance of Solana (SOL) in comparison to Bitcoin (BTC) and Ethereum (ETH). According to their analysis, Solana’s momentum has been decreasing over the past month, especially when looking at the Realized Cap metric. This metric helps investors understand how many holders are currently in profit or at a loss by tracking the last price at which each coin was moved.
The analysis shows that while Bitcoin experienced a positive monthly change of 10.87%, and Ethereum followed with a 5.43% increase, Solana’s Realized Cap has only climbed by 2.19%. This suggests a faster decline in momentum for SOL compared to BTC and ETH. Glassnode emphasizes that this metric can indicate shifts in capital inflows or outflows for these cryptocurrencies, highlighting Solana’s declining momentum during the recent Market downturn.
Yet it’s not all bleak for Solana. Glassnode also pointed out earlier this week that since early September 2023, the blockchain has enjoyed a positive net capital inflow, albeit with brief periods of outflow. Some analysts note that this continuous liquidity influx has contributed to Solana’s growth, showcasing a peak inflow of $776 million of new capital per day.
As of now, Solana is trading at $186.12, which marks a slight decline of over 1.5% in the last 24 hours. Investors are keenly watching these developments as the Market landscape evolves.
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What does “diminishing momentum” mean for Solana?
Diminishing momentum means that Solana is not growing as quickly or strongly compared to Bitcoin and Ethereum. This can be seen in its trading volume and user activity, which are slowing down.
Why is Solana losing momentum compared to Bitcoin and Ethereum?
Several factors contribute to this. There may be increased competition from other blockchains, changes in Market interest, or issues with Solana’s network performance that affect investor confidence.
Is it a bad sign for Solana’s future?
Not necessarily. While decreasing momentum can be a concern, it doesn’t mean that Solana is doomed. The project might still have potential for growth and innovation as it develops.
What can Solana do to regain momentum?
Solana can focus on improving its technology, enhancing user experience, and building partnerships to attract more developers and users. Marketing efforts can also help increase visibility and interest.
Should I invest in Solana despite its current momentum?
Investing always carries risks, so it’s important to do thorough research. Consider how Solana fits into your investment strategy and keep an eye on its developments and Market trends before making a decision.
