Solana exchange balances have fallen to their lowest level since October 2022
The post Solana exchange balances have fallen to their lowest level since October 2022 appeared on BitcoinEthereumNews.com. Solana exchange balances have fallen to their lowest level since October 2022 and currently store just 27.01 million SOL on centralized exchanges. The 27.4% decline from 37.22 million SOL in early March comes after a series of institutional and retail occasions pushing tokens off exchanges and into self-custody programs. Solana exchange outflows driven by institutional and ETF demand The decline in Solana exchange balances is due to numerous institutional innovations that have created demand for off-exchange custody. On March 20, the first batch of Solana futures ETFs was introduced. This was the beginning of institutional product exposures in SOL. Once the futures ETF launches, the biggest financial houses like Grayscale, Fidelity, and Franklin submitted applications for spot SOL ETFs. Bloomberg raised the chances of spot ETF application approval to 90% by 2025 and generated institutional investor anticipation. This regulatory progress has prompted institutions to move their SOL holdings to compliant custodians or cold wallet storage rather than keeping tokens on exchanges, according to analyst Murphy. The institutional preference for secure custody solutions has contributed to the overall reduction in exchange balances as professional investors prepare for potential ETF launches. Staking activity has also increased substantially, with approximately 64% of total circulating SOL currently staked across various protocols. The total value locked in protocols such as Raydium, Jito, and Marinade has surged. This attracted more SOL to be moved on-chain to participate in staking rewards. Additionally, specific whale movements have been tracked, including 374,000 SOL transferred from Binance to an unknown wallet on April 21, 2025, and 145,000 SOL moved from Kraken to three newly created addresses on May 2, 2025. DeFi and meme coin activity drives on-chain SOL demand The Solana network has experienced substantial growth in decentralized finance activity and meme coin trading. This has created additional demand for…
The post Solana exchange balances have fallen to their lowest level since October 2022 appeared on BitcoinEthereumNews.com.
Solana exchange balances have fallen to their lowest level since October 2022 and currently store just 27.01 million SOL on centralized exchanges. The 27.4% decline from 37.22 million SOL in early March comes after a series of institutional and retail occasions pushing tokens off exchanges and into self-custody programs. Solana exchange outflows driven by institutional and ETF demand The decline in Solana exchange balances is due to numerous institutional innovations that have created demand for off-exchange custody. On March 20, the first batch of Solana futures ETFs was introduced. This was the beginning of institutional product exposures in SOL. Once the futures ETF launches, the biggest financial houses like Grayscale, Fidelity, and Franklin submitted applications for spot SOL ETFs. Bloomberg raised the chances of spot ETF application approval to 90% by 2025 and generated institutional investor anticipation. This regulatory progress has prompted institutions to move their SOL holdings to compliant custodians or cold wallet storage rather than keeping tokens on exchanges, according to analyst Murphy. The institutional preference for secure custody solutions has contributed to the overall reduction in exchange balances as professional investors prepare for potential ETF launches. Staking activity has also increased substantially, with approximately 64% of total circulating SOL currently staked across various protocols. The total value locked in protocols such as Raydium, Jito, and Marinade has surged. This attracted more SOL to be moved on-chain to participate in staking rewards. Additionally, specific whale movements have been tracked, including 374,000 SOL transferred from Binance to an unknown wallet on April 21, 2025, and 145,000 SOL moved from Kraken to three newly created addresses on May 2, 2025. DeFi and meme coin activity drives on-chain SOL demand The Solana network has experienced substantial growth in decentralized finance activity and meme coin trading. This has created additional demand for…
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