Solana On-chain Flows Flag Notable Supply Shift As Sol Trades Near...

Solana’s supply crunch and liquidity inflows kept the price above $120, but demand from futures traders remained subdued.

Solana’s (SOL) onchain flows are flashing a powerful supply-side shift with the crypto asset hovering just above the $120 support zone, but market participation still needs to intensify to turn this structural advantage into upside momentum.

$2.12 billion USDC flowed into Binance while $1.11 billion SOL exited, forming a textbook bullish structure around the $120 level.

SOL futures volume fell 3% while BTC and ETH saw 43% and 24% jumps, signaling sluggish trader participation despite improving spot mechanics.

Relative unrealized profit retreated to October 2023 lows, indicating a marketwide profitability reset similar to prior accumulation phases.

Last week, Solana witnessed a striking liquidity divergence on Binance, with USDC (USDC) inflows ballooning to $2.12 billion, while SOL outflows exceeded $1.11 billion. CryptoQuant data indicated that this dynamic is crucial for defending major support levels, including $120, above which the price has been stabilizing.

Large stablecoin inflows typically represent pending buy-side liquidity from whales or institutional entities who are partially sidelined. Meanwhile, native token outflows reduce exchange-side sell pressure, reinforcing the idea of a structural supply crunch.

The fact that USDt (USDT) saw a $450 million outflow further underscored a shift toward USDC-driven capital deployment in Solana ecosystems, a trend historically aligned with constructive market behavior.

Despite a tightening supply profile, follow-through demand remains essential. Without active spot buyers stepping in, supply-side strength alone may not sustain broader directional moves.

According to Glassnode’s cost basis distribution heatmap, a large tranche of buyers recently bought about 17.8 million SOL at a cost basis of $142 and another 16 million SOL at $135.

Source: CoinTelegraph