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Fidelity has described Solana as “an emerging piece of financial market infrastructure” in its latest report, according to AMBCrypto. The characterization comes as SOL trades just a few points above $50, following a recent drop below the $70 level that triggered profit-taking among investors.
More coverage is filed under Altcoins.
Earlier reporting: Bitcoin ETFs Record $75 Million Net Inflow as Fidelity Offsets BlackRock Outflows.
As of 08:25 UTC, Solana traded at $85.67, -0.9% over 24 hours, with $2.1 billion in 24-hour volume.
Trading Volume and Growth Metrics
The report highlights that Solana’s trading volume accounted for about 15% of the combined volume of the five major U.S. stock exchanges this year. This metric underscores the network’s increasing role in digital asset trading. Additionally, the number of trades on Solana has grown nearly 100 times since 2022. In comparison, major U.S. stock exchanges saw a trade count growth of only 1.76 times over the same period.
These figures suggest that Solana’s competitive advantage is becoming increasingly tied to on-chain trading activity. The report indicates that increased trade volume drives higher transaction fees and overall revenue within the Solana ecosystem. This dynamic provides a clearer utility story for the SOL token, with long-term value potentially dictated by on-chain demand rather than speculative price movements alone.
Macro Liquidity and Stablecoin Market
Despite the positive structural indicators, SOL has been the worst performer in the fourth-quarter rally. The token recently broke below the $50 level, a move attributed to insufficient liquidity in the stablecoin market. Total stablecoin market capitalization has slipped below $300 billion following a 1.7% weekly decline. This marks the first time the market cap has dropped below this level since it rallied toward $320 billion ahead of last October’s crash.
However, signs of improving liquidity are emerging. Circle recently created $250 million more USDC on the Solana blockchain. Concurrently, the U.S. M2 money supply increased by $113 billion, reaching a record level of $23.41 trillion. These developments suggest that macro liquidity is expanding, which could set the stage for capital to flow back into the crypto market.
If capital returns to the market, Solana’s growing on-chain activity could become a significant factor in driving future price appreciation. The 15% share of trading volume relative to U.S. stock exchanges is viewed as potentially just the beginning of growth. Increased macro liquidity can boost on-chain activity, which in turn raises network fees and improves revenue for the ecosystem.
Source: AMBCrypto
