Glassnode, an on-chain analytics firm, recently shared an intriguing observation: Solana is exhibiting more resilience compared to Bitcoin and Ethereum when analyzing a particular indicator.
In their latest discussion on X, Glassnode delved into the performance of major cryptocurrencies during the market downturn, specifically focusing on "Hot Capital." This measure looks at recent capital flows into an asset, using the Realized Cap for transactions over 24 hours to a week as its basis.
The Realized Cap is a unique valuation model that considers a token’s true value to be the price at its last blockchain transaction, as opposed to the common market cap, which represents the current value of all held coins. Essentially, this indicator reflects the capital investors have recently put into buying the cryptocurrency.
Considering the age bands of 24 hours to a week, the Realized Cap shows us how much new capital has entered the market for a particular coin. Take a look at this chart illustrating Ethereum’s Hot Capital trend over the last year:
From this graph, we can see that Ethereum’s Hot Capital (represented by the black curve) reached its peak in December, indicating a surge in new capital inflow at that time. However, following that trend, it experienced a significant drop.
Since December, the demand for new ETH has decreased by more than 52%. Bitcoin, which closely mirrored Ethereum’s pattern, actually saw an even larger decline of 77%. "The momentum has cooled sharply since the December peaks," Glassnode pointed out.
Interestingly, while Bitcoin and Ethereum face substantial slowdowns, Solana’s case differs, as illustrated by the following chart:
Back in December, Solana’s aggregated Realized Cap for the 24-hour and 1-day to 1-week age bands was at $15.8 billion. Although demand has decreased since then, today this figure stands around $11.8 billion, resulting in a lesser decline of just 25%. In this timeframe, Solana has shown remarkable resilience compared to its peers, Bitcoin and Ethereum.
Whether Solana’s relative strength will influence its price positively remains to be seen.
At the time of writing, Solana’s price is approximately $172, marking a decline of over 12% in the past week.
The coin’s price seems to have taken a steep downturn recently.
Featured images come from Shutterstock.com and Glassnode.com, with charts sourced from TradingView.com.
