On-chain data shows whales are buying up Solana (SOL), an asset with multiple potential use cases. As the altcoin season intensifies, SOL may become key to additional growth.
On-chain data shows whales are back to accumulating Solana (SOL) in self-custodial wallets. SOL has stabilized around $236.39, with no signs of immediately chasing a new all-time high. Demand for SOL is coming from the decentralized ecosystem, liquid staking projects, and from the potential to adopt SOL after Grayscale filed to transform its Solana investment product into an ETF.
SOL remains one of the key blue chip tokens, a potential entry into multiple trades. Meme tokens are still going strong on Solana, with both Pump.fun activity and secondary trading still attracting liquidity.
Solana ecosystem activity has also achieved more reliable transactions, with up to 63% of all transfers passing, and a failure rate of only 36%. Failed transactions have reached close to 70% in the past, limiting the potential for DeFi usage.
The Solana ecosystem gained attention once again after the listing of Moodeng (MOODENG), the first Pump.fun token to enter Coinbase. Solana’s activity may extend the meme token market. SOL is yet undecided on its narrative, whether it would perform along with the meme space, or follow the lead of ‘dinosaur altcoins’ recently breaking to new record prices.
Four whales withdrew SOL from Binance
A total of four whale transactions were noticed in the past 24 hours, withdrawing 185,510 SOL from Binance. The funds, valued at $42.46M, were sent to four large-scale whale wallets. Some of the whale activity on Solana is considered a sign of smart money moving in, buying the dip and riding the recent trends.
Two of the addresses were simple holders of SOL. The first wallet was a frequent trader, moving coins to the centralized exchange in the past for realizing profits. The second wallet held a larger reserve of 31,333 SOL and serving as an intermediary for outflows. That wallet sent out 6,249 SOL to another intermediary address.
SOL may be used for both simple and liquid staking, as well as lending and DEX liquidity. Solana drew in $9.2B in value after the 2024 market recovery. Holding SOL in a self-custody wallet gives more flexibility for traders. Binance also offers its own BNSOL liquid staking token, but these particular whales wanted full control of their coins.
The next whale wallet belongs to active meme token traders with extensive portfolios. The largest wallet held 46,103.18 SOL and a total of 119 meme tokens. The fourth wallet was used to trade mSOL staking tokens through Jupiter, while retaining a balance of 23,149.88 SOL.
Solana is widely distributed into multiple wallets, though some may be connected. The top 100 rich list includes a burn address, and carries around 40% of all coins and tokens. Out of more than 536M SOL, 1.26M is held as wrapped SOL (WSOL) on the Ethereum ecosystem for trading, DeFi and other tasks.
Whales are actually a rarity on the Solana ecosystem, where the bulk of wallets hold less than 0.01 SOL.
Whales also accumulate Pepe (PEPE)
Whale transactions were also registered for Pepe (PEPE), a relatively older meme coin. After the listing on Coinbase, PEPE held relatively stable near the peak of its range at $0.000020.
The meme token has spent a few weeks at that level, suggesting it may be ready for a breakout. Even with centralized listings, on-chain activity also reflects sentiment for tokens.
One recent holder build up a PEPE stash to qualify for the top 150 of addresses, for now leaving the tokens dormant. Additionally, the Bybit cold wallet, the third-largest holder of PEPE, has become active, sending and receiving coins from the exchange.
PEPE is considered one of the prime candidates to extend the meme super cycle. Meme tokens also boost demand for ETH and SOL as utility tokens and as components of trading pairs. A breakout of PEPE may affect the entire meme ecosystem and continue the rollover of liquidity.
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