BlockBeats News, December 10, according to Decrypt, Bitcoin’s Tuesday rise led to a general rise in mainstream altcoins. However, against the backdrop of declining liquidity and increasing market uncertainty, Solana’s fundamentals remain unstable. On-chain analytics platform Glassnode stated that Solana’s 30-day average spent output profit ratio has been below 1 since mid-November. When this ratio is below 1, it means that the realized losses in the market exceed the realized gains, indicating that liquidity has shrunk to near bear market levels.
On-chain analytics platform Altcoin Vector stated that “Solana is in a comprehensive liquidity reset phase. This signal has often heralded the start of a new liquidity cycle in the past and has led to price rebounds. If this trend repeats the pattern from April, then reigniting the market may still take about four weeks, roughly corresponding to early January.”
Wenny Cai, Chief Operating Officer of SynFutures, stated: “This round of leverage reset is driven by sell-offs triggered by realized losses, a decrease in open interest in futures, market maker contraction, and liquidity fragmentation among different trading pools.” Although the medium to long-term outlook remains mildly bullish under the relief of macro pressure, the market remains noisy and vulnerable to shocks in the short term.
