Solana Performance Review: Why It Is Expected to Become the New Dominant Digital Asset?
In the field of digital assets, Bitcoin and Ethereum have long dominated the market, but Solana is rapidly rising, attracting the attention of a large number of investors and developers. With innovative technology and strong market demand, Solana is becoming an emerging force in the blockchain industry. This article will analyze Solana's market performance during the period of 2023-2025, providing investors with a outlook.Keywords
- Realized Market Cap: A valuation metric, the realized market cap measures the cumulative net capital flow since the project's inception, reflecting the actual capital inflow in the market.
- Dynamic Realized Market Cap: A valuation metric, the dynamic realized market cap mainly assesses two aspects of digital assets: first, the number of active accounts holding the digital asset within the last 7 days; second, the scale of new market demand.
Price Performance and Growth Rate
Since January 2023, mainstream assets BTC, ETH, and SOL have seen significant net capital inflows, with Bitcoin still leading in terms of net capital inflow scale. However, among mainstream assets, Solana has become one of the fastest-growing digital assets in terms of price performance and ecosystem growth rate.
Image from Glassnode
Realized Market Cap
The following chart shows the heatmap of mainstream assets' Realized Cap since January 2023:
- Bitcoin: Realized market cap is 843 billion, an increase of 121% from the initial 381 billion.
- Ethereum: Realized market cap is 256 billion, an increase of 45% from the initial 176 billion.
- Solana: Realized market cap is 83 billion, an increase of 295% from the initial 21 billion.
From the heatmap distribution, Bitcoin still dominates, while Solana shows impressive growth rates.
Image from Glassnode
Dynamic Realized Market Cap ("Hot" Realized Cap)
Dynamic realized market cap is used to assess new capital entering the market and the demand from new retail investors. The following chart compares the dynamic realized market cap of Bitcoin, Ethereum, and Solana:
Image from Glassnode
When Bitcoin reached a new high of $100,000, new Bitcoin holders had a holding value of 99.6 billion, an increase of 119.91% from the previous period's 45.3 billion. Ethereum's dynamic realized market cap did not create a new high compared to the previous period, while Solana's dynamic realized market cap reached a new high of 15.8 billion in this period.
It is easy to see from the chart that market demand for Solana and Bitcoin has increased, with Solana showing a significant increase, while Ethereum's demand remains neutral, and market performance is not as strong as in the previous period. Therefore, it can be concluded that more investors prefer to hold Solana and Bitcoin, with Solana being the top choice for investors.
Retail Activity and Holdings
In this period, Solana surpassed Ethereum in terms of capital acquisition scale for the first time, demonstrating its strong market demand and growing importance. Active capital inflow is the main factor driving Solana's growth and performance exceeding that of Ethereum. It can also be observed that the Sol/Eth ratio (the ratio of one Sol to one Eth) is steadily rising, indicating that Sol's price performance is also steadily improving.
Image from Glassnode
Active Address Count
The number of active addresses on Solana far exceeds that of Bitcoin and Ethereum in this period, with Solana's daily active addresses around 12.3 million, Bitcoin's daily active addresses around 760,000, and Ethereum's daily active addresses around 501,000. The data shows that Solana's daily active addresses are 16 times more than Bitcoin and 24.6 times more than Ethereum.
Image from Glassnode
Transaction Demand and Asset Transfer Volume
Rising Transaction Fees: Solana's transaction fees have risen multiple times, indicating strong network demand, while the significant increase in transaction volume shows that more users are participating in the Solana ecosystem.
Image from Dune
Image from Glassnode
Conclusion
Solana's ecosystem has performed exceptionally well from 2023 to 2025, with remarkable growth in Realized Cap, even surpassing Bitcoin and Ethereum, highlighting its new position in the digital asset market. As retail holdings and active address counts continue to grow, Solana's market appeal becomes increasingly strong. Furthermore, robust transaction demand and the continuously increasing asset transfer volume further validate the activity and user participation in the Solana ecosystem, showcasing strong growth momentum and tremendous development potential. Solana is not only breaking through existing limitations but is also rapidly becoming a core force that cannot be ignored in the future blockchain landscape.
Disclaimer This article and related content are for reference only and do not constitute any form of investment advice, financial advice, legal opinion, or other professional consultation. All information is based on publicly available data and general analysis, which may be inaccurate, incomplete, or outdated. Investors should independently assess their own situations and make cautious decisions.
