- Nearly 75% of Solana’s circulating supply is underwater, signaling intensified selling and potential market bottom.
- Bitcoin and Ethereum show less severe capitulation at roughly 35-38%, acting as safer havens.
- November saw $5.5 billion in liquidations, highlighting a flush-out phase that often precedes strong rebounds in undervalued tokens.
The stark reminder of crypto’s volatility, on-chain data from Glassnode reveals unprecedented levels of unrealized losses across top assets, signaling a potential capitulation phase for the market. As of November, over 74% of Solana (SOL) supply is held at a loss, dwarfing the figures for Bitcoin (BTC) at 34.91%, Ethereum (ETH) at 38.37%, and XRP at 36.70%. This divergence underscores SOL’s sharper correction amid broader market pressures, including regulatory headwinds and liquidity squeezes.
Comparing BTC and ETH: Milder Corrections Amid Market Turbulence
The metrics, derived from Glassnode’s Percent Supply in Profit indicator, paint a picture of investor pain. Historically, when loss percentages spike above 70% for altcoins like SOL, it often marks the exhaustion of sellers—weak hands capitulating while long-term holders (LTHs) accumulate at discounted prices.
SOL’s average acquisition cost sits around $159, far above its current trading levels near $100, amplifying the distress. In contrast, BTC’s relatively milder 35% loss rate reflects its status as a safer haven, with short-term holders (STH) facing average costs of $105,000 versus spot prices hovering at $70,000.
ETH’s 38% in the red highlights layer-1 vulnerabilities, down 45% from its all-time high of $4,953, exacerbated by delayed ETF inflows and staking yield compression. XRP, meanwhile, mirrors BTC’s resilience at 37% losses, 50% off its peak, buoyed by ongoing Ripple-SEC resolution optimism. November has seen $5.5 billion in liquidations, per Coinglass, pushing the market toward a flush-out pattern where dormant capital awaits rotation.
On-Chain Conviction: Whale Accumulation and Dormancy Breaks
Yet, this pain could be the prelude to recovery. On-chain dormancy flows and whale accumulation metrics suggest conviction building at these lows—realized prices breaking lower often precede bullish reversals. For SOL, a swing back to positive territory could ignite a 2-3x rally, drawing parallels to its 2021 surge post-capitulation.
BTC and ETH, with healthier distributions, may lead the charge, pulling alts higher. Traders should monitor MVRV Z-scores; undervaluation here screams opportunity for risk-tolerant portfolios. The dust settles, this capitulation isn’t a death knell but a reset. Crypto’s cycles thrive on such purges, weeding out leverage and rewarding patience. With macro tailwinds like potential Fed pivots on the horizon, November’s lows might soon be history’s footnotes.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
