Solana (SOL) is facing renewed pressure after blockchain analytics platform Glassnode revealed a striking imbalance in market positioning. According to the report, 79.6% of Solana’s circulating supply — roughly 478.5 million SOL — is currently held at a loss, with the asset trading around $126.9.

This metric highlights how top-heavy the market structure had become prior to the recent drawdown, as a significant share of holders accumulated SOL at higher price levels during previous rallies.

Glassnode reports nearly 80% of Solana’s supply is now held at a loss.
With SOL trading around $126.9, the market reveals just how top-heavy things became before the recent correction.

A Market Reset After Aggressive Accumulation

The data suggests that Solana’s strong rallies throughout the year attracted substantial buying interest near local tops. As the broader crypto market cooled, the impact on Solana holders became pronounced:

  • Nearly 4 out of 5 SOL tokens are now underwater.

  • This indicates elevated levels of unrealized losses, often a precursor to a shift in investor sentiment.

  • The concentration of holders at higher cost bases signals a compressed market structure, where momentum traders and newer entrants bought into strength but now face prolonged downside.

Why This Matters

1. Increased Selling Pressure Risk

When a large portion of supply is in loss, short-term holders may be quicker to exit positions, creating overhead resistance.

2. A Potential Reset for Long-Term Investors

Historically, periods where the majority of supply dips into loss can bring healthier market resets — flushing out leveraged positions and speculative excess.

3. Signals of Momentum Exhaustion

Glassnode’s data underscores how frothy the Solana market became amid rapid ecosystem developments, memecoin mania, and DeFi resurgence earlier in the year.

The Road Ahead for Solana

Despite short-term pressures, Solana continues to lead in:

  • High-throughput DeFi

  • Active developer activity

  • Growing memecoin ecosystems

  • Consistent institutional interest

As markets stabilize, Solana’s fundamentals may attract renewed accumulation — but the current on-chain metrics show the ecosystem is navigating a significant correction phase.

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