Over $2 billion inflows into Solana in a day; Why SOL is pumping

As most assets in the cryptocurrency industry are trading back in the green and the sector as a whole has grown its market capitalization to $1.65 trillion, some are performing better than others, particularly Solana (SOL), which has received an influx of over $2 billion in a single day.

Specifically, the market cap of Solana has increased from $41.79 billion to $44.17 billion in just 24 hours, which means that it has added as much as $2.38 billion and grown by 6.5% during this time, according to the most recent CoinMarketCap data retrieved on February 2.

Solana price analysis

Meanwhile, the fifth-largest crypto asset by market cap has managed to surpass the coveted psychological price mark at $100 and is currently changing hands at $101.58, recording an advance of 5.96% on the day and a 12.57% gain across the week, as it moves to erase the 5.27% drop on its monthly chart.

As it happens, Solana’s massively bullish market cap and price performance coincide with an increase in the activity on its network, which in January topped a multi-year high at $1 trillion in transaction volume, growing 30% since December, at levels not seen since September 2022, as per The Block data.

Moreover, the number of registered addresses on its blockchain exceeded 10 million in January, which is the largest figure since May 2022, when the number of crypto wallets on the Solana network reached 11.72 million, demonstrating growing interest and engagement.

Furthermore, the often-touted ‘Ethereum killer’ made news for dethroning Ethereum (ETH) in the 24-hour decentralized exchange (DEX) volume, recording a weekly volume increase of 15.34%. In comparison, its main competitor lost 12.44%, as Finbold reported on February 1.

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