Solana's Exchange Supply Plummets: A Bullish Signal?

Holy smokes, the SOL token stash on centralized exchanges just nosedived by a whopping 27.4%, now sitting at a mere 27.01 million! We're talking levels not seen since the dark days of October 2022. Buckle up, folks, because analysts are whispering sweet nothings about a bullish market on the horizon.

On-chain guru Murphy dropped a bombshell on X, revealing that from early March to now, the Solana (SOL) hoard on centralized exchanges has crashed from 37.22 million to 27.01 million. That's right, a jaw-dropping 27.4% plunge, folks! We're teetering on the edge of SOL's lowest point since the crypto winter of '22.

Murphy, armed with data from Glassnode, reckons this supply drop on exchanges like Binance, Coinbase, and Kraken could be a sign of soaring market demand for SOL. It's like investors are snatching up tokens left and right, holding tight instead of hitting the sell button. This could either send Solana's price skyrocketing or put the brakes on the rally. Hold onto your hats, people!

"Get ready for a wild ride, folks! Between $162 and $176, there's a battleground of chips that could either prop us up during dips or throw up roadblocks during climbs," Murphy declared in a recent post that's got the crypto world buzzing.

Murphy's pointing fingers at institutional demand, staking frenzy, and whale accumulation as the culprits behind this supply nosedive. It's like SOL's got a solid foundation beneath it, ready to weather any storm.

At press time, Solana's taken a tiny tumble, down 0.5% in the last 24 hours, trading around $174. But don't let that fool you – SOL's been on a tear over the past month, soaring more than 15%. With a market cap of $90.7 billion and a daily trading volume that's jumped 23.3% to nearly $4 billion, Solana's not messing around.

Murphy's calling it – if SOL can bust through that $176 ceiling, it could blow the doors off the "trapped supply" and pave the way for a price explosion that'll leave your head spinning.

Main reasons behind the SOL supply drop

Murphy's spilled the beans on four big drivers behind this CEX supply meltdown. First up, institutional demand and ETF action are heating up, especially after big shots like Grayscale, Fidelity, and Franklin threw their hats in the ring for Solana spot ETFs. Bloomberg's betting a 90% chance of approval by 2025, folks!

Next, staking on Solana exchanges is on fire. Murphy's crunching the numbers and says a staggering 64% of circulating SOL is staked right now. Protocols like Raydium, Jito, and Marinade in the SOL ecosystem are seeing their Total Value Locked shoot through the roof, luring more SOL onto the chain for yield farming or staking. It's a staking party, and everyone's invited!

But wait, there's more! SOL trading on DEXs is absolutely bonkers, thanks to a meme coin mania that's sweeping the nation. We're seeing a seismic shift from CEX to DEX trading, with Solana-based meme coins making up a mind-blowing 92% of DEX activity. And get this – Solana's TVL has soared 54%, while DEX volume has skyrocketed 90% since April 2025. It's a wild west out there, and SOL's leading the charge!

Murphy's also spotted whales gobbling up SOL from exchanges like there's no tomorrow. Data from Whale Alert and Lookonchain shows 374,000 SOL hightailing it from Binance to an unknown wallet on April 21. Then, on May 2, 2025, 145,000 SOL made a break for it from Kraken to three freshly minted wallet addresses. It's a whale feeding frenzy, and SOL's the main course!

On-chain data's screaming that Binance and Kraken are feeling the biggest pinch when it comes to SOL balance. It's like the crypto gods are shifting the tides, and SOL's riding the wave.

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