Solana Received Over $800 Million In Net Flows Over Three Months

Unlike Ethereum, Solana is a modern blockchain with relatively high scalability. The platform can process thousands of transactions every second, translating to low fees

Solana remains under immense selling pressure, with bulls struggling for momentum as $160 emerges as a local resistance level. Despite September's upside momentum, Solana buyers failed to lift prices above this line. At press time, there's a local double top, although one analyst on X notes that Solana outperformed other platforms with a sharp net inflow.

Solana Net Flows Surpass $800 Million In Three Months

Solana is a modern blockchain with high scalability, unlike Ethereum. The platform can handle thousands of transactions per second, leading to lower fees and more projects launching on Solana to enhance user experience. This is evident in the capital flowing into Solana over the last three months.

Solana registered a net flow of over $800 million, which is more than double the capital received by OP Mainnet, an Ethereum layer-2, and significantly higher than Sui, another scalable blockchain, over the last three months. It also surpasses the capital received by Base and Starknet, two popular Ethereum layer-2s, and more than what Avalanche and BNB Chain received during this period.

Interestingly, Arbitrum, an Ethereum layer-2 and the largest of them all, along with Linea, Blast, and Bitcoin, saw outflows during this period. Despite being the largest smart contracts platform, Ethereum had a massive outflow of nearly $800 million.

It's unclear what triggered outflows from Ethereum and capital inflows into Solana. Differences in on-chain fees might play a role, as could the continuous sell-off in ETH throughout Q3 2024. At current prices, ETH is down 35% from Q3 24 highs, while Solana is only 25% off its July highs, when it rallied to around $192 before retracing.

Can SOL Break Past $160?

Solana is facing intense selling pressure despite attracting capital. The local resistance at $160 must be breached convincingly for the uptrend to continue, as seen in H2 2023. Further gains could see Solana rally to as high as $190 and potentially breaking out of the current range.

However, there could be obstacles. If Bitcoin fails to recover, it could drag the altcoin markets, including Solana. Additionally, there are concerns that the upcoming FTX token distribution could negatively impact SOL prices.

According to Token Unlocks, the team will begin unlocking tokens on December 26, 2024. Over 66,000 SOL will be released daily for a year.