Solana’s Liquidity Gets Crushed in Surprise Market Squeeze

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Solana’s Liquidity Gets Crushed in Surprise Market Squeeze

In Brief

• Solana’s realized P/L ratio has stayed below 1, signaling weakened liquidity.
• The metric matches conditions seen in past deep downturns.
• SOL’s stability now depends on fresh demand reversing the liquidity contraction.

Ana Zirojević 2025-12-10

A key on-chain metric is signaling that liquidity in the Solana (SOL) ecosystem is drying up fast, with its realized profit-to-loss (P/L) ratio, which is measured as a 30-day simple moving average (SMA), remaining under 1, where it’s been since mid-November.

The Realized P/L Ratio for Solana, shared by blockchain analytics platform Glassnode on December 10, offers a unique view into how much capital is actually flowing through the ecosystem. The ratio under 1 means the network is realizing more losses than profits, a sign that market liquidity is thinning out.

Liquidity can be assessed through several measures, including the Realized Profit-to-Loss Ratio (30D-SMA).
For Solana, this ratio has traded below 1 since mid-November, meaning realized losses now exceed realized profits. This signals that liquidity has contracted back to levels… https://t.co/KWA67kkGLm pic.twitter.com/cZELe5xzdD

— glassnode (@glassnode) December 10, 2025

When profits dominate, liquidity expands as traders and investors recycle gains back into the market. When losses pile up, that liquidity dries out quickly.

Return to Conditions Seen in Deep Market Downturns

Indeed, Glassnode’s data shows Solana is now back in territory typically associated with prolonged periods of market stress. Similar readings have historically appeared during deep bear market phases, when sell pressure rises, buyer conviction weakens, and trading becomes more fragile.

This extended drop below 1 suggests that Solana’s liquidity environment has cooled far more sharply than price alone might indicate. Realized losses outweighing realized gains for weeks at a time points to a market where confidence is softer and fewer market participants are willing to deploy capital aggressively.

For the time being, SOL is changing hands at the price of $136.81, which indicates an increase of 3.06% in the last 24 hours, a 3.26% drop across the previous seven days, and an accumulated loss of 18.81% on its monthly chart, according to the latest information.

*Solana price 7-day chart. Source:* *CoinMarketCap*

Solana stabilizing or continuing to weaken may now depend on whether demand returns or this liquidity contraction marks the start of a more prolonged tightening phase.

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Ana Zirojević Crypto journalist and market analyst with 7+ years of experience covering digital assets, blockchain technology, and data-driven market analysis.