Solana Tokens Flood Exchanges Amid Market Cap Decline

Solana's network activity has been under scrutiny lately, and recent data suggests that SOL tokens have been flowing into exchanges at an unprecedented rate. Over the past 17 days, approximately $202 million worth of Solana was deposited onto trading platforms, with a total of 2.35M SOL tokens changing hands.

This influx coincided with the network's Market Value to Realized Value (MVRV) ratio hitting its lowest level since May 2022, when Solana traded between $40 and $50 following broader market declines. The MVRV ratio fell below 0.8, a threshold that historically occurs during about 5% of trading days.

According to Glassnode data, active deposit flows to exchanges spiked earlier this month before moderating. Despite the slowdown in new deposits, exchange wallets continue holding elevated SOL balances following multi-week accumulation.