On-chain data shows the Solana Realized Profit/Loss Ratio has dipped into the loss-taking zone recently, a sign that SOL liquidity has thinned.
Solana Liquidity Back At Levels Associated With Bear Markets
According to data from on-chain analytics firm Glassnode, Solana liquidity has recently contracted to levels that are typically witnessed in a bear market. There are many ways “liquidity” of a cryptocurrency can be assessed, but here, Glassnode has used the Realized Profit/Loss Ratio.
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This indicator measures, as its name already implies, the ratio between the amount of profit and loss that the SOL investors as a whole are realizing through their transactions.
The metric works by going through the transaction history of each coin being sold on the network to see what price it
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