Interest in Solana is surging as investors have bridged over $120 million in liquidity to the network in just the past month, according to insights from Debridge.
The majority of this new capital came from Ethereum, contributing $41.5 million, followed closely by Arbitrum at $37.3 million.
Other notable transfers included Base with $16 million, BNB Chain with $14 million, and Sonic at $6.6 million, signaling a wider market shift favoring Solana and its associated ecosystems.
Solana Experiences Significant Liquidity Influx
This influx of liquidity marks a sharp turnaround from earlier this year when Solana faced considerable outflows.
Following the controversial LIBRA meme coin incident in Argentina, which tied back to President Javier Milei, investors withdrew about $485 million from Solana, choosing to allocate their resources to competing platforms like Ethereum and BNB Chain.
The recent return of capital is a promising sign, indicating that investor confidence may be stabilizing, especially with a resurgence in the trading of memecoins.
Memecoins such as POPCAT, FARTCOIN, BONK, and WIF have led this positive momentum, showcasing weekly gains of 79%, 51%, 25%, and 21%, respectively.
While these speculative tokens have generated a fresh wave of on-chain activity, Solana’s fee generation has yet to revert to its previous peaks.
In March, the network’s fee revenues fell to just under $46 million, a stark contrast to January’s heights that exceeded $400 million, with current figures for April hovering around $22 million.
On-chain metrics further highlight this increased activity level. Glassnode recently noted that more than 32 million SOL, representing 5% of the total supply, was accumulated at the price of $130 in recent days.
#Solana’s URPD shows a major shift in cost basis over the past two days, forming the largest supply cluster (>5%) at $129.79 with over 32M $SOL. This zone could act as a support during future drawdowns, reflecting high investor engagement at this price level. pic.twitter.com/mrunKSjKZL
— glassnode (@glassnode) April 15, 2025
This accumulation may establish $130 as a key support threshold, with additional clusters identified at $117.99 and $144.54, marking potential short-term resistance points. Analysts now view $129 as a pivotal reference for Solana’s price trajectory.
Ethereum Faces Declining Fees Amid Market Slowdown
In contrast, Ethereum is witnessing a significant decline in transaction fees, which have fallen to their lowest levels in five years, currently averaging just $0.168 per transaction.
This downturn is primarily due to diminished network usage, as fewer participants are engaging in ETH transfers or utilizing smart contracts, according to insights from Santiment’s Brian Quinlivan.
“With lower demand, there’s less competition for block space, which means users are not forced to bid high fees,” Quinlivan stated.
He cautioned that such low activity levels and minimal fees might indicate a slowdown in Ethereum’s momentum for a short-term price recovery.
BREAKING: Ethereum fees are at a 5-year low, with transactions currently costing just $0.168. This is the cheapest daily cost of making $ETH transfers since May 2, 2020. We briefly break this down in our latest insight. https://t.co/fg5CfRgsHn pic.twitter.com/QlLwyzdm1F
— Santiment (@santimentfeed) April 16, 2025
In the last two weeks, Ethereum’s price has declined more than 12.5%, trading just below $1,600 at the time of this report.
This market downturn followed U.S. President Donald Trump’s announcement regarding extensive tariffs on April 2, which has led to increased economic uncertainty, impacting both traditional and cryptocurrency markets.
Last month, crypto investor Nic Carter from Castle Island Ventures identified two critical factors undermining Ether’s value: the advent of layer-2 (L2) solutions and rampant token issuance.
Carter noted that these “greedy Eth L2s” are diverting value from Ethereum’s primary layer without providing adequate returns, while excessive token creation has led to devaluation, asserting that “ETH was buried in an avalanche of its own tokens, dying by its own hand.”
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