cryptoglobe.com
As the price of the native token of smart contract platform Solana, SOL, keeps on rising, various cryptocurrency whales have started amassing it, with whales adding over 200,000 SOL worth around $35 million to their wallets.
According to data shared by on-chain analysis service Lookonchain, three different cryptocurrency whales added over $35 million worth of SOL to their wallets over the past few days. One whale withdrew 153,511 SOL from leading cryptocurrency exchange Binance before staking the funds, while another withdraw 35,498 SOL from Binance and Kraken before staking.
A third whale the service identified withdrew little over 13,000 SOL from Binance, bringing their total SOL holdings to 95,651 tokens, worth $16.8 million.
Whales are accumulating $SOL!
— Lookonchain (@lookonchain) October 27, 2024
AA21…VxH9 withdrew 153,511 $SOL($26.4M) from #Binance in the past 6 days and staked it.
EHax…gAUa withdrew 35,498 $SOL($6.12M) from #Binance and #Kraken in the past 3 days and staked it.
EGzi…mR7g withdrew 13,000.8 $SOL($2.3M) from #Binance… pic.twitter.com/pfd24qTuSy
The accumulation wasn’t just seen on-chain, as CoinShares’ latest Digital Asset Fund Flows report reveals that Solana investment funds saw $10.8 million in net inflows over the past week, in their fourth consecutive week of inflows.
The report details Bitcoin investment products saw $920 million net inflows over the past week, while Ethereum products saw $34.7 million outflows. In total, crypto products saw $901 million inflows.
🚨NEW: Solana saw $10.8M in net inflows from digital asset investment products, marking its fourth consecutive week of inflows.
— SolanaFloor (@SolanaFloor) October 28, 2024
Bitcoin led with $920M in inflows, while Ethereum and Cardano were the only assets to record outflows.
Source: @CoinSharesCo pic.twitter.com/GYFqy5nqhZ
Investors are accumulating SOL at a time in which the cryptocurrency is nearly overcoming Binance’s BNB to become the fourth-largest digital currency by market capitalization.
It’s worth pointing out that both cryptocurrencies have very distinct supply mechanics, even though both are gas tokens used within their blockchains that power their decentralized finance ecosystems.
While BNB has a real-time burning mechanism that was introduced with BEP-95 and sees a portion of the collected gas fees get burned in each block in a bid to reduce its total circulating supply, Solana doesn’t have a maximum supply, but rather an inflation mechanism.
Solana is an inflationary token whose supply increases at a predetermined rate. At launch, it had a 500 million SOL supply allocated during the creation of the genesis block —the first block on a blockchain. The current total supply now stands at 587 million SOL.
Featured image via Unsplash.