Solana's MVRV Ratio Hits 8-Month Low Amid Growing Selling Pressure
Solana's market capitalization relative to its realized value has hit an extreme low, sparking concerns about selling pressure on the cryptocurrency. The MVRV Ratio, which tracks Solana's market cap against its realized cap, fell below 0.8 for the first time since May 2022.
According to Glassnode data, exchange balances for Solana increased by 2.35 million SOL over the past 17 days, worth approximately $202 million at current prices. This influx of tokens to trading platforms coincided with the network's MVRV Ratio falling below 0.8.
The last time Solana saw such a low MVRV Ratio was in May 2022, when the token traded between $40 and $50 following broader cryptocurrency market declines. After that trough, Solana remained in a consolidation phase for 17 months before beginning a recovery in late 2023.