Solana's Whale Accumulation Drives 17% Active Addresses Surge, Outpaces Ethereum

Whales have recently made significant moves in the crypto space, with $80 million in Solana (SOL) being parked, which has propelled the chain’s activity to outpace Ethereum. This surge in activity is accompanied by increased whale accumulation and robust network traffic, indicating strong market confidence and potential breakout scenarios for Solana.

According to a recent report, whale accumulation alongside rising network metrics suggests that SOL may soon breach critical resistance levels. This is supported by the fact that Galaxy Digital has withdrawn approximately 606,000 SOL tokens valued at $79.7 million from exchanges, subsequently staking 462,000 SOL (around $60 million). This move signals a confident shift among key institutional investors, bolstering long-term convictions in the chain’s fundamentals.

Solana’s network metrics indicate remarkable growth, with active addresses reaching 29 million—a 17% increase since last month—and total transactions soaring to 374 million, dominating other blockchain networks. Furthermore, decentralized exchange (DEX) trading volumes have surged to $2.27 billion daily, overtaking Ethereum (ETH) and highlighting Solana’s growing position in the DeFi landscape. Transaction fees have also increased by 42% to reach $7.67 million, reflecting heightened on-chain demand and user engagement. This momentum illustrates not only a rise in user adoption but also an expanding ecosystem across Solana’s DeFi and NFT initiatives, further supporting the current upward trend.

While the spot market shows robust momentum, recent derivatives data illustrates a more cautious stance among traders. Open Interest rose by 10.71% to reach $5.57 billion, while Options Volume skyrocketed by 164.97% to $2.55 million, indicating increased interest in market positions. However, total trading volume fell by 31.89%, and Options Open Interest declined by 15.20%, hinting that traders are approaching the market with selectivity, potentially hedging existing positions or waiting for clearer signals before committing to long positions. This cautious sentiment is particularly relevant given the strong resistance level at $145.

Analyzing recent liquidations sheds light on the market’s current dynamics. Short liquidations reached $5.57 million compared to just $81,900 in long positions, indicating that sellers were potentially unprepared for the recent bullish rally. This trend shows that upward pressure could be building, possibly driven by a short squeeze. However, Funding Rates have remained largely neutral to slightly negative, suggesting that many traders are still hesitant to take aggressive long positions amid rising prices.

In summary, Solana is currently positioned at a critical juncture characterized by strong technical indicators, whale backing, and increasing on-chain activity. Yet, the $145 resistance level remains a significant challenge that needs to be overcome. Should the bulls successfully flip this level to support, SOL could experience an expedited move toward $180. As the market oscillates at this pivotal point, both buyers and sellers remain active, yet further confirmation is required to establish a definitive market direction.