Solana has once again reached $100, becoming one of the stronger-performing mainstream tokens in this round of rebound in the crypto market. CoinGecko Data shows that SOL has risen by over 23% in the past week, with its price once reaching $107, marking the first time it has been in three digits since February of this year.
ETF Funds Flow Hits a New High in the Initial Stage
One of the factors driving this round of increase is the continued strengthening of the capital flow related to ETF and Solana. Reports show that the cumulative net inflow of Solana ETF rose to $1.2 billion on Tuesday, with nearly $34 million in capital inflows alone on Monday, setting a new record for the largest single-day inflow this year, and it has recorded net inflows for five consecutive trading days.
On-chain US dollar liquidity has increased.
The liquidity on the chain is also improving. Data from DefiLlama shows that the total scale of stablecoins on the Solana network approached $16 billion on Thursday. This means that the dollar-denominated liquidity available for direct trading and DeFi activities within the network has further increased, providing support for high-frequency trading and on-chain applications.
In addition to the expansion of the stablecoin market, the activity on the Solana blockchain also remains high. According to DefiLlama, the decentralized exchange Solana has processed nearly $56 billion in transactions over the past 30 days, and this week alone has exceeded $10 billion. Unlike Bitcoin, which is more oriented towards the narrative of "value storage," the market performance of Solana relies more on its low-cost, high-speed on-chain transaction capabilities and the demand for its use.
Market risk appetite has recovered simultaneously.
The broader market environment also provides support for crypto assets. Reports mention that the US Treasury Department announced a series of treasury bond repurchase arrangements last week, which some investors interpreted as a sign that market liquidity may improve. After risk appetite recovers, funds tend to flow towards crypto assets and other assets with higher volatility.
In this round of rebound, Bitcoin was the first to strengthen and drove the overall market back to recovery, once breaking through $80,000. However, looking at the performance during this phase, SOL's increase was significantly faster than that of most altcoins.
However, the existing data does not indicate that funds are shifting on a large scale from Bitcoin to Solana. Data from CoinGlass shows that spot Bitcoin in the United States recorded a net inflow of over $232 million on Thursday, with trading volume reaching $8 billion that day, indicating that Bitcoin remains one of the core assets in this round of institutional capital allocation.
