• Solana’s Percent Supply in Profit has dropped to about 20%, affecting roughly 478.5 million SOL tokens.

• The shift highlights a rapid transition from over 80% profitability earlier this year to widespread losses amid declining prices.

• Despite the downturn, institutional inflows into Solana ETFs and over $1 trillion in DEX volume this year indicate sustained network strength and investor interest.

Solana profitability drops as 80% of supply enters loss: Explore the market reset, price support levels, and steady institutional flows in this in-depth analysis. Stay informed on crypto trends.

What Is Causing Solana’s Sharp Profitability Drop?

Solana’s profitability drop stems from a rapid price pullback that has pushed nearly 80% of its circulating supply into loss territory, as reported by on-chain analytics from Glassnode. This reset follows months of extended profit conditions where over 80% of tokens were profitable during the rally toward $280 highs. The current state at $126.9 reflects a market correction, with late-cycle buyers from $150-$200 ranges now facing unrealized losses, signaling a broader unwind of speculative positions.

How Has the Percent Supply in Profit Metric Changed for Solana?

The Percent Supply in Profit for Solana has contracted dramatically from highs above 80-90% earlier in the year to just 20% now, according to Glassnode data. This metric, which tracks the portion of circulating tokens trading above their acquisition cost basis, underscores the top-heavy market structure before the recent downturn. Nearly 478.5 million SOL tokens are now underwater, a figure that highlights the speed of the reset—dropping in near-vertical fashion as prices fell from yearly peaks. Expert analysts note this pattern mirrors historical cycles, where prolonged rallies lead to overextended positions and subsequent profit-taking cascades. For context, similar drops occurred during the 2022 bear market, but today’s environment benefits from stronger fundamentals like robust network activity.

Solana’s on-chain metrics reveal deeper insights into this shift. During the upward momentum, aggressive bidding kept profitability elevated, supporting price discovery. However, as selling pressure mounted, the curve inverted quickly, leaving holders cautious. This isn’t isolated; broader crypto market dynamics, including reduced risk appetite across assets, have amplified the effect. Traders accumulated heavily in the $150-$200 zone, viewing it as a value entry, but the subsequent decline has tested that thesis. The reset clears weaker hands, potentially setting the stage for healthier long-term positioning if support holds.

Frequently Asked Questions

What Percentage of Solana’s Circulating Supply Is Currently in Loss?

Approximately 79.6% of Solana’s circulating supply, or about 478.5 million SOL, is now in loss at the current price of $126.9. This figure comes from Glassnode’s on-chain analysis, which shows a swift profitability contraction after months of strong gains. It indicates a market reset but does not necessarily predict further downside if key supports remain intact.

Is Solana’s Network Activity Still Strong Despite the Profitability Drop?

Yes, Solana’s network remains highly active, having processed over $1 trillion in decentralized exchange volume this year alone, making it the first Layer 1 blockchain outside Ethereum to achieve this milestone. This sustained usage reflects developer and user confidence in its scalability, even as profitability metrics reset. Institutional participants continue to show interest through steady ETF inflows during the pullback.

Key Takeaways

• Market Reset in Progress: Solana’s profitability drop to 20% in profit signals a structural shift, clearing overextended positions from the recent rally.
• Support Levels Critical: Trading near $120-$130, a break below could target $100, while resistance at $135 offers a potential rebound path.
• Fundamentals Hold Firm: With $1 trillion in DEX volume and ongoing ETF inflows, Solana’s ecosystem provides a buffer against short-term price pressure.

Conclusion

Solana’s profitability drop and the entry of nearly 80% of its supply into loss highlight a pivotal market reset, driven by price pullbacks from highs above $280. Yet, steady institutional flows and record-breaking network activity, including over $1 trillion in DEX volume, underscore the blockchain’s enduring appeal as a high-performance Layer 1. As Solana hovers near crucial support at $126.9, investors should monitor these levels closely for signs of stabilization. Looking ahead, this correction could pave the way for renewed growth if broader market sentiment improves and on-chain metrics recover.

Solana’s profitability sharply contracts as nearly 80% of circulating supply enters loss, reflecting a major structural reset across recent trading sessions. Market positioning shifts quickly after extended profit-heavy conditions, leading to a steep decline in Percent Supply in Profit as price loses momentum. Institutional inflows and steady network activity remain present despite the downturn, supporting market interest as Solana trades near crucial support levels.

Solana’s on-chain data shows a sharp drop in profitability as the asset trades near $126.9, marking one of its deepest resets since the 2022 market downturn. Glassnode reported that Solana’s Percent Supply in Profit has fallen to about 20%, leaving around 79.6% of circulating tokens in loss. This shift reflects a rapid move away from the extended conditions seen earlier in the year. Nearly 478.5 million SOL now sits below cost basis as market pressure accelerates.

For months, Solana traded with most of its supply in profit, often above the 80% to 90% region. That phase supported aggressive bidding during the rally toward its highs above $280. As selling resumed, the profitability curve dropped in near-vertical form, matching the price decline. This change resembles earlier periods where traders reduced exposure after extended upward moves.

The recent move shows a complete shift from elevated confidence to broader caution. Late-cycle buyers who accumulated between $150 and $200 now dominate the group holding at a loss. This reset reflects a market clearing phase that typically follows rapid speculative expansion, although short-term stabilization remains dependent on price behavior around support levels.

Sharp Profitability Contraction Amid Price Pullback

Solana fell to $122 last week before stabilizing near $128, maintaining a tight range during a period of reduced risk appetite. The drop from its yearly peak has brought the market toward areas that traders view as decisive zones. Bears focus on potential moves toward $100 if current support breaks under renewed selling.

The $120 to $130 region has become a key reference point as trading activity clusters around these levels. The region marked the first area of buying interest after the steep profitability drop. A move away from this area could define the next phase of market direction, with volatility expected as liquidity shifts.

Meanwhile, resistance near $135 remains an important threshold. A sustained break above this region would help offset the pressure created by the profitability reset. Market participants continue to monitor whether buyers can regain control after the sharp unwind.

Institutional Flows and Network Activity Remain Steady

Despite the decline, U.S. spot Solana ETFs recorded steady inflows during the recent drawdown. This trend shows ongoing interest from institutional participants seeking exposure during lower pricing phases. These inflows added stability during periods of increased market stress.

Solana’s network activity has remained active, with more than $1 trillion in DEX volume recorded this year. This milestone positioned Solana as the first Layer 1 outside Ethereum to reach such levels. Activity supported broader confidence during the earlier rally and continues to provide structural backing during the downturn.

Together, ETF participation and network usage have offered counterbalance as profitability metrics reset. Traders now watch whether these elements can help guide sentiment as Solana tests support and evaluates its path forward.