Brothers, am I really forgetting something? Recently, looking at SOL's trend, my mind is a bit overwhelmed.
How should I put it, after falling so much from a high level, there's not even a little rebound strength, just soft and limp.
It shouldn't be like this! Even if we don't look at anything else, just the funds locked in the SOL ecosystem, there should still be over 20 billion, right?
If there's money, why isn't it pushing the market up? Could it be that all this money has become dead money?
I’ve been pondering privately for a long time, and I really don’t think I’m mistaken—it's just that the market is going through such a brutal phase right now, so let’s break it down in plain language:
First, the money in the ecosystem does not equal the money used to push the market up.
Many people have a misconception, thinking that with over 20 billion in the pool, the price should rise.
Actually, most of this money is from institutions and market makers depositing for investment and providing liquidity.
Now that the overall market is lukewarm, these smart funds are just earning interest steadily inside, who would foolishly come out at high prices to buy in and push the index, only to be dumped on and run away?
This is called a “liquidity trap,” money is on the books but not participating in buying and selling.
Second, retail investors are truly being cut deep, their bottom line blood is broken.
Why was SOL so hot before? Honestly, it was all thanks to retail investors rushing into various meme coins.
Recently, that wave of frenzy, dozens of hot coins in one day, everyone FOMOing like crazy.
But what happened? One wave after another, rapid zeroing out, many retail investors lost everything, closing accounts and quitting.
The SOL ecosystem relies on retail investors using transaction fees to support it; without retail traders, on-chain activity drops, so who do you expect to buy SOL?
Third, the trend has shifted now, hot money has moved to other sectors.
Crypto funds are the most opportunistic.
Before, everyone thought SOL was an “Ethereum killer,” but now that story is over, funds are turning to AI sectors or Bitcoin ecosystems.
SOL’s position is very awkward now—above are those who chased high and got trapped, and even a slight rise causes some to dump and run; below, there are no new retail investors coming in to lift the price.
Anyway, I’ve now figured it out—SOL’s fundamentals haven’t collapsed, the chain is still fast, but the financial market is trading on “expectations.”
There are no new stories; the existing funds are just fighting internally.
That over 20 billion is just its “bottom line,” ensuring it won’t die, but it’s definitely not the “engine” driving a rally right now.
So don’t doubt yourself; we haven’t forgotten—it's indeed fallen this much.
In the short term, don’t expect a V-shaped reversal, brothers, hold your horses, don’t rush to buy the dip, let the bullets fly a little longer! $SOL $BTC
