- Solana is showing strong investor confidence, with over 2.2 million SOL exiting exchanges and DeFi TVL nearing $10 billion.
- Steady derivatives activity and rising on-chain engagement suggest the rally is backed by real demand, not hype.
Solana [SOL] has quietly been flexing its muscles in the crypto market, and recent on-chain data reveals why smart money might be paying close attention. With its DeFi total value locked (TVL) nearing $10 billion and over 2.2 million SOL flowing out of exchanges in May alone, Solana appears to be entering a pivotal accumulation phase.
Exchange Outflows Point to Investor Confidence
Exchange balances for SOL saw a sharp decline in May, dropping from 33 million to just over 30.8 million — a net outflow of more than 2.2 million SOL. Historically, such sustained outflows have been a hallmark of investor conviction, indicating that holders are transferring their tokens to cold storage or into DeFi applications, betting on long-term value appreciation. The timing coincides with SOL trading near multi-month highs around $180-$190, underscoring a strong belief in the asset’s future upside.
Also read: XRP Price Set for Breakout After $2.30 Bounce — Is a Bullish Reversal Ahead?
DeFi Ecosystem on Fire
Solana’s DeFi footprint continues to expand. The network’s TVL hit $9.45 billion recently, climbing 2.3% in just 24 hours. This growth isn’t in isolation — Solana also recorded $2.1 billion in daily DEX volume and holds over $11.5 billion in stablecoins, a clear indicator of deep liquidity and active capital deployment.
Additionally, daily revenue from dApps reached $3.44 million, and active addresses exceeded 4.3 million — signs that real users, not just speculators, are fueling the ecosystem’s growth.
Derivatives Market Shows Measured Optimism
On the Futures front, SOL’s aggregated funding rate remained slightly positive at 0.0015, indicating bullish sentiment without an overheated market. Open Interest, while slightly down to $3.88 billion, still reflects steady participation and a balanced approach among traders.
Unlike speculative manias, this rally seems grounded in fundamentals, with healthy DeFi activity, steady derivatives volumes, and strong user engagement forming its backbone.
Solana’s latest metrics paint a picture of quiet strength — a network where fundamentals are aligning with market sentiment. If the current accumulation and DeFi growth continue, SOL could be gearing up for its next major breakout.
