$227M in SOL Tokens Shift to Exchanges

• A massive inflow of $227 million in Solana (SOL) has hit centralized exchanges, coinciding with a previous occurrence that triggered a significant run to $200. 
• Analysts believe that the ongoing mini rally of Solana (SOL) could be sustained and fueled by the booming on-chain activities and the latest security initiative. 

Coinglass data has disclosed a significant increase in net inflows of $227.21 million in Solana (SOL) on various centralized exchanges.

According to our research, this is the third-highest inflow ever recorded. Fascinatingly, the previous highest net inflow of $300 million recorded in March 2024 was accompanied by a massive increase in related derivative trading and Decentralized Finance strategies, pushing the price up to $200.

The resulting rally was short-lived as the asset formed an extensive range of a descending channel which was subsequently broken in November 2024. Meanwhile, the asset made a massive run to a new all-time-high price of $263 on November 23, 2024, before the broad market pullback forced it down the price curve.

Analysts’ Opinion on the Price

Commenting on Solana’s recent price behavior, an analyst identified as Jelle pointed out that SOL has broken out of a downtrend that sprung up following the historic run on November 23. According to him, this breakout is a bullish scenario and could position the asset for an impressive upsurge in the coming weeks. Meanwhile, SOL has already risen above a 50-day exponential moving average (EMA).

Earlier, another analyst called MartyParty predicted that SOL could hit $345 between January and March 2025. Backing his prediction, the analyst attached a price chart that confirmed the formation of an interesting chart pattern called “ghost feed.”

Analyst “Ridger R” also believes that the asset has just wrapped up its downward wave and could be “charging up” towards a new all-time high price soon. According to him, the base targeted price should be between $400 to $600. This aligns with our earlier coverage, which estimated that SOL could hit $300 and proceed to a new high.

Solana’s (SOL) On-chain Activities and New Security Mechanism

Analyzing its on-chain activities, CNF discovered an interesting surge in Total Value Locked (TVL) as Solana added $1 billion in stablecoin to bring the total TVL in that category (Stablecoin) to $5 billion. Per our observation, USDC dominated this category with almost $4 billion contribution. Tether’s USDT also added a TVL of $1 billion.

Outside the booming on-chain activities and the bullish chart formations, the price of SOL could also be fueled by the recent addition of a new security mechanism called Solana Winternitz Vault.

As featured in our recent coverage, this mechanism was specifically designed to mitigate the risk of potential quantum computing attacks. Prior to this, concerns about the vulnerability of the existing Solana’s cryptographic techniques grew among users, as experts highlighted the loopholes in the “foundational elliptic curve cryptography (ECC)” integrated to protect digital assets. The latest added mechanism creates 32 private key scalars and ensures that each one is hashed 256 times. This ends up generating a safe public key.

Solana’s security proactiveness follows a recent report by CNF which highlights Google’s latest technological breakthrough dubbed Willow. As we discussed, the quantum computing chip poses a serious threat to the likes of Bitcoin as it solves computational problems in less than five minutes. According to Google’s Quantum AI lead Hartmut Neven, this innovation surpasses the time scale in physics as well as the age of the universe.

At press time, SOL was trading at $215 after surging by 10.99% on its weekly price chart.

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