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Solana Surges 20% as Institutional Inflows Boost Liquidity

Coin WorldFriday, Apr 18, 2025 6:34 am ET

1min read

Solana has experienced a significant surge, with its value increasing by nearly 20% over the past week, outperforming its competitors. This rally has been driven by a pronounced long-side imbalance, with over 70% of Binance Open Interest (OI) skewed to the upside. Such a leverage-heavy structure, if not supported by sustained spot inflows and firm bid-side absorption, increases the risk of a liquidation cascade on any sharp retracement. This raises the question: is Solana primed for a classic liquidity sweep and mean reversion, or are leveraged participants front-running something much bigger?

This week has been pivotal for Solana, with key developments setting the stage for its next phase of expansion in Q2. Canada launched the world’s first spot Solana ETFs on the Toronto Stock Exchange, marking a significant step in institutional adoption. Additionally, DefiDevCorp, a notable player in the decentralized finance (DeFi) space, acquired $10.5 million worth of SOL, earning them the moniker “the MicroStrategy of Solana” as their SOL treasury now totals 163,651.7 SOL, approximately $23 million in today’s market. Galaxy Digital has also been quietly bolstering its Solana portfolio, withdrawing an additional 150,221 SOL from Binance, pushing their total withdrawals to $58 million since April 14th. These institutional inflows have catalyzed a 20% weekly surge in SOL, with Futures Open Interest (OI) peaking at $3.34 billion and reclaiming late-March resistance levels at $134.

Looking ahead, if institutional inflows continue to bolster Solana’s liquidity, it could mitigate the risk of a similar event. Solana’s Q2 technical outlook remains bullish, with significant upside potential. Since SOL’s recent dip to $100, over 200,000 new wallet addresses have been onboarded, signaling robust user adoption. Coupled with institutional accumulation, bullish longs, and a rising tide of market optimism, this sets the stage for a potentially powerful Q2 for Solana.

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