Why is SOL leading the way amidst the market plunge? The signals behind the $3.08 million net inflow

January 21st, global risk assets experienced a sharp correction, with the total cryptocurrency market cap evaporating over $120 billion in a single day. During this “Black Monday,” Solana(SOL) demonstrated rare resilience: spot ETFs recorded approximately $3.08 million in net inflows, while Bitcoin ETFs saw outflows of $483 million on the same day, and Ethereum also faced capital withdrawals. This contrast is intriguing—why does SOL still attract institutional funds when risk aversion dominates?

What Does Capital Flow Indicate

Looking at the price, SOL retreated from its high to around $127, down 12.8% this week. But examining the capital flow, it was countercyclical, attracting funds during the market’s most panic-stricken moments. This phenomenon of “price falling, funds flowing in” usually indicates that market confidence in its fundamentals remains intact.

The most obvious comparison is Bitcoin. As the largest crypto asset, BTC experienced $483 million in outflows during the same period, while SOL’s mere $3.08 million net inflow formed a relatively strong position. This is not just a comparison of absolute numbers but a contrast in flow directions—while traders are liquidating BTC and ETH, some are quietly accumulating SOL.

On-Chain Data Provides Confidence

A key detail from the news is that, despite the overall market sentiment being weak, the growth of new addresses on the Solana network remains stable. On Monday, about 8.6 million new addresses were added, and on Tuesday, around 8.4 million—only a slight decrease of 2.38%.

What does this imply? Growth in new addresses typically indicates genuine usage demand and a potential user base, rather than short-term speculation. In other words, even as prices decline, real users continue to join the Solana network. This is an additional signal outside of price trends—fundamentals are not collapsing but rather accumulating.

How Important Are Support Levels

Currently, SOL is oscillating around $127, with a key support zone forming near $125. Buying interest is gradually absorbing selling pressure in this area, preventing further downside in the short term. Holding this support is crucial because it determines two possible future trajectories.

Optimistic Scenario

If the price can re-establish above $132, it could rebound toward $136, partially recovering this week’s losses. This rebound range of about $4–$9 makes sense as a recovery given the current volatility.

Risk Scenario

If it breaks below $125, the market may test the next support around $119. This would open further downside space, requiring stronger fundamentals to stabilize.

Why Can SOL Attract Funds Against the Odds

In my view, several factors are intertwined behind this phenomenon:

First, Solana’s network activity and ecosystem development remain leading among similar projects, and on-chain data stability gives institutions confidence. Second, during a period when Bitcoin and Ethereum face capital pressure, SOL, ranked 7th by market cap, appears “undervalued” and attractive. Lastly, the current risk-hedging logic in the market may be shifting—not everyone is indiscriminately liquidating; some are selectively choosing assets.

Summary

The contrarian inflow into Solana ETFs, stable growth in network activity, and its relative strength outperforming Bitcoin and Ethereum all point to a signal: in the context of a global risk asset correction, SOL is being re-priced by the market. Whether the $125 support can hold will be key to assessing if this relative strength is sustainable. If it re-establishes above $132, a rebound to $136 is feasible; otherwise, further downside risks should be watched. In the current volatile environment, SOL has become one of the most noteworthy assets in the crypto market.