The on-chain analytics agency Glassnode has revealed the rationale why Solana (SOL) has just lately been lagging behind Bitcoin (BTC) and Ethereum (ETH).
Solana Realized Cap Progress Has Slowed Down Lately
In a brand new put up on X, Glassnode has mentioned about how the latest efficiency of Solana has stacked up towards the 2 largest cash within the sector. “Taking a look at worth efficiency, SOL outpaced each ETH and BTC for many of This autumn 2024,” notes the analytics agency. “Nonetheless, since early December, ETH has taken the lead, outperforming the opposite two belongings.”
Because it stands proper now, Bitcoin is up round 18% over the previous month, Ethereum 28%, and Solana 3%. Thus, SOL has clearly fallen off after being the market chief simply earlier.
What might be behind this shift out there? The reply to the query may lie within the capital flows that these cryptocurrencies have just lately been observing.
In an effort to estimate the capital flows for the belongings, Glassnode has made use of the Realized Cap indicator. The “Realized Cap” refers to an on-chain capitalization mannequin that calculates the whole worth of any digital asset by assuming that the ‘actual’ worth of any token in circulation is the worth at which it was final transacted on the blockchain.
Because the final switch for any coin is more likely to characterize the final level at which it modified fingers, the worth at its time might be thought-about its value foundation. Thus, the Realized Cap is a sum of the fee foundation of all cash within the circulating provide or, extra merely, a measure of the whole quantity of capital that the traders as an entire have put into the cryptocurrency.
On this view, adjustments within the Realized Cap basically mirror the quantity of capital that’s exiting out of or coming into into the asset. Beneath is the chart for the 7-day change within the indicator shared by the analytics agency, which showcases these outflows/inflows occurring for Solana and others.
From the chart, it’s seen that the 7-day change within the Realized Cap was at notable constructive ranges between September and early December. Bitcoin and Ethereum additionally noticed capital inflows on this interval, however SOL was merely rising at a considerably quicker tempo.
This month, although, the sector has seen a flip as each Bitcoin and Ethereum have pulled forward of Solana. The sooner greater capital inflows had been probably the drivers behind SOL’s outperformance, so with them gone, it is smart that the highest two belongings would take over.
SOL Worth
Whereas Bitcoin and Ethereum have loved a surge over the previous couple of days, Solana has been shifting in a sideways trajectory as its worth remains to be buying and selling round $221.
