Share this article
Solana Hits Liquidity Reset That Preceded Every Major Rally This Year
The index reset to near-zero readings before abruptly turning higher — a shift that triggered weeks of trending price action and rapid rotation into Solana-based altcoins.
Updated Dec 10, 2025, 9:57 a.m. Published Dec 10, 2025, 9:31 a.m.
Make us preferred on Google
What to know:
- Solana's liquidity index has reset to its cyclical floor, similar to previous phases that led to multi-week rallies.
- Analysts suggest that liquidity, not price, is the earliest indicator of a new trend developing in Solana's market structure.
- Historical patterns indicate that liquidity upturns are abrupt, often leading to rapid capital rotations into Solana-based altcoins.
Solana’s market structure is showing signs of entering a new liquidity cycle, with on-chain metrics flashing conditions similar to prior bottoming phases even as price action remains muted.
Swissblock data shows Solana’s liquidity index has collapsed to its cyclical floor, the same zone that preceded multi-week rallies in March, June and August.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Liquidity can be assessed through several measures, including the Realized Profit-to-Loss Ratio (30D-SMA).
— glassnode (@glassnode) December 10, 2025
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
In each of those instances, the index reset to near-zero readings before abruptly turning higher — a shift that triggered weeks of trending price action and rapid rotation into Solana-based altcoins.
This week’s reading mirrors that setup. The index has once again reset to its base level, marking the fourth such instance this year. Some market watches tracking these cycles argue that liquidity, not price, is the earliest signal that a new trend is developing.
“Solana is under a full liquidity reset,” on-chain research group Altcoin Vector wrote. In previous cycles, they said, that phase reflected a market clearing process in which “forced selling exhausts, the ecosystem cleans from the inside out, and SOL begins building the base for its next expansion leg.”
A key lesson in alt positioning: when liquidity ignites, the move is fast.$SOL is under a full liquidity reset, setting a new liquidity cycle, as in past bottoming phases.
— Altcoin Vector (@altcoinvector) December 5, 2025
Forced selling exhausts, the ecosystem cleans from the inside out, and SOL begins building the base for… pic.twitter.com/tiLw6gwhdb
The timing aligns with prior cycles as well. Swissblock’s liquidity mapping shows roughly 79 days between the reset and ignition phases earlier this year, then 41 days, and most recently 43 days.
Altcoin Vector noted that if the current pattern mirrors April’s setup, “reignition could take around four more weeks, lining up with early January.” But they cautioned that an earlier turn is still possible, as liquidity tends to lead price by a meaningful margin.
The takeaway for traders watching altcoins is that liquidity upturns tend to be abrupt and decisive. In every cycle mapped on the Swissblock chart, the ignition phase triggered rapid multi-week rallies — often catching market participants flat-footed.
Those periods also saw a broader rotation into altcoins as capital moved down the risk curve once Solana established directional momentum, leading to capital rotations across sectors such as memes, DeFi, RWA, and others.
