Solana’s Liquidity Faces New Challenges
The cryptocurrency market has been a rollercoaster, and Solana (SOL) is no exception. Recent on-chain analytics reveal that Solana’s liquidity has contracted to levels last seen during bear markets, raising concerns across the decentralized finance (DeFi) community.
According to analytics platforms Glassnode and Altcoin Vector, Solana’s 30-day profit-to-loss ratio has fallen below one since mid-November. This data suggests more trading losses are being realized compared to profits—a sign that liquidity is drying up. Furthermore, the market faces a significant $500 million liquidation risk if Solana’s price drops by another 5.5%, landing close to $129.
Exploring Solana’s Liquidity Reset
Market experts are describing this situation as a
