Catenaa, Tuesday, December 16, 2025-Solana’s network is under stress as liquidity thins and profitability declines, according to on-chain data from Glassnode.
The 30-day average realized profit-to-loss ratio for SOL has remained below 1 since mid-November, signaling that traders are realizing losses more often than gains, a metric associated with bear-market conditions.
Analysts describe the situation as a “full liquidity reset,” historically a pattern preceding new liquidity cycles and market bottoms.
Exchange outflows have reduced available supply, while spot Solana ETFs recorded $17.72 million in net inflows this week, nearly matching last week’s $20.30 million, providing partial structural support.
Despite this, elevated leverage across crypto markets has amplified volatility. CoinGlass reported $432 million in liquidations over the past 24 hours, with Solana accounting for $15.6 million.
The token climbed 3.2 percent during the day, highlighting short-term swings despite structural weaknesses.
Market watchers expect potential recovery around early January if liquidity conditions improve.
Pye Finance recently raised $5 million in a seed round to build bond markets for Solana validators and stakers, aiming to turn billions in locked SOL into active yield opportunities.
Analysts caution that near-term pressures from shrinking profitability, thinning liquidity, and leveraged positions make Solana vulnerable to sudden price swings.
Broader market dynamics, including potential Federal Reserve liquidity measures, could affect investor sentiment and provide catalysts for recovery across crypto assets.
