On-chain data shows Solana has seen a capital flow reversal recently

input: On-chain data shows Solana has seen a capital flow reversal recently as the asset is now receiving inflows at the same rate as XRP.

On-chain data from Glassnode suggests that capital has recently begun flowing back into Solana at a significant rate, with the asset now seeing monthly realized cap gains in line with XRP.

Solana’s Realized Cap Trend Has Changed Recently

In a recent X post, on-chain analytics firm Glassnode highlighted a shift in trend for Solana’s Realized Cap.

The “Realized Cap” is a capitalization model that calculates the total value of a given cryptocurrency by assuming the ‘real’ value of each individual token to be the same as its last transaction price.

The last transfer of any coin is likely to represent the last point it changed hands, so the price at its time could be considered as its current cost basis. Thus, the Realized Cap is nothing, but the sum of the cost bases of the asset’s circulating supply.

In essence, the model provides insight into the collective capital employed by investors or addresses on the network to acquire their collective holdings. Changes in the Realized Cap, therefore, indicate capital inflows or outflows, depending on the direction of the change.

To illustrate this, the analytics firm shared a chart comparing the 30-day percentage change in the indicator for both Solana and XRP over the past few months:

As visible in the above graph, the 30-day change for both Solana and XRP slid into the negative over early this year as a broader market downturn took hold. However, for the latter, it still mostly remained inside the positive territory.

SOL wasn’t so lucky, as the indicator turned negative and stayed inside the territory for a couple of months, signaling that investors were persistently withdrawing capital from the cryptocurrency.

Recently, though, a flip appears to have again taken place for the network, as the 30-day change in the Realized Cap has surged back into the positive zone. Inflows are coming into the asset at a rate of 4-5% for the coin now, which is in line with what XRP is witnessing as well.

Thus, it seems that while demand for the Solana ecosystem went away for a while, it has finally made a potential return, one big enough to rival XRP.

SOL Price

Solana saw a break beyond the $180 mark earlier in the week, but it appears the coin has since suffered a pullback as its price is now back at $170.