Solana Hits New Milestone With Record Retail Holders
Solana holders are stacking up their portfolio despite a poor institutional performance last week. The number of addresses with up to 0.1 or more SOL hit a new all-time high. This falls within the range of small retail wallets showing strong optimism over two quarters. Most retail interests can be linked to growing DeFi activities, suggesting a sustained price surge.
DeFi Sparks Fresh Demand
On-chain data shows that 11.6 million wallets have at least $0.1 SOL, signaling systemic adoption growth. The soaring retail holders are a major shift from other networks that have seen whales swallow small holder positions. For Solana, retail adopters are spiking for various reasons, including an imminent price rally and an influx of DeFi services on the network.
In December 2024, the figure reached 9 million, with analysts projecting a bullish year marked with favourable macro factors. Despite a weak start due to extended trade wars, Solanas network activity grew, drawing institutional attention. At the time of writing, total value locked (TVL) on the ecosystem surged past $10.9 billion.
The networks TVL has surpassed Base, Optimism, and Arbitrum and is positioned to attract more users in the coming months. Solanas decentralized application (DApp) revenue also hit the highest point in three months due to a spike in staking interest. Furthermore, the frenzy around Solana meme coins placed adoption in top gear.
Last year, top Solana meme coins tapped new highs amid a spike in crypto adoption. Official Trump ranks highest with a $2.6 billion market capitalization, while daily trading volumes are near $1 billion. The token exchanges hands at $14.22, a 6% upswing today. Meanwhile, BONK, Fartcoin, and dogwifhat are next with rising community support.
Institutional Funds: A Necessity For Solana
Solanas uphill price climb cannot solely be sustained with retail demand reaching an all-time high. The network saw a similar spike in institutional activity in the same period. Data from CoinShares shows consecutive weekly inflows to Solana funds. In addition to on-chain factors, these inflows heightened bull pressure in Q4 2024, setting the benchmark this year.
The clamor for spot Solana ETFs in the United States fueled optimism for a mega price rally ahead. SOL is expected to notch huge inflows after approval as an institutional favorite asset.
Read more: https://zycrypto.com/solana-hits-new-milestone-with-record-retail-holders/
Text source: ZyCrypto
