Sam Martin

<div id="highlights-block_617725d07bf3f" class="highlights">
        <ul>
                <li>SOL is down 40% from all-time highs despite strong activity on-chain</li>
                <li>The ETH/BTC ratio slides as investors seek safety in the king of digital assets</li>
            </ul>
    
</div>



<p>SOL is trading near $160, down nearly 40% from its all-time high seen on Nov. 6, 2021.</p>



<p>Data from Chaincrunch shows that on-chain activity on Solana remains strong.</p>



<p>80.78% of the SOL supply is held in only 173 wallets, according to data from Chaincrunch.</p>



<p>The ETH/BTC ratio has slid more than 7% this week as investors seek safety in BTC in a risk-off environment. </p>



<p>OpenSea volume has picked back up since the beginning of December after a down month in November.</p>



<h3 class="wp-block-heading"><strong>Latest in Macro:</strong></h3>



<ul class="wp-block-list"><li>S&amp;P 500: 4,634, -0.75%</li><li>NASDAQ: 15,237, -1.14%</li><li>Gold: $1,773, -0.78%</li><li>WTI Crude Oil: $70.65, -0.90%</li><li>10-Year Treasury: 1.443%, +0.019%</li></ul>



<h3 class="wp-block-heading"><strong>Latest in Crypto:</strong></h3>



<ul class="wp-block-list"><li>BTC: $48,364, +1.50%</li><li>ETH: $3,872, +0.80%</li><li>ETH/BTC: 0.0797, -1.61%</li><li>BTC.D: 41.95%, +0.14%</li></ul>



<h3 class="wp-block-heading">Solana user growth</h3>



<p>Solana (SOL), the fifth-largest cryptocurrency in the digital asset space with a market cap of roughly $47 billion, is down approximately 40% from its all-time high of <a href="https://coinmarketcap.com/currencies/solana/" target="_blank" rel="noreferrer noopener">$258.93 seen on Nov. 6, 2021</a>. It is currently trading at $154, according to data from <a href="https://coinmarketcap.com/currencies/solana/" target="_blank" rel="noreferrer noopener">CoinMarketCap</a>.</p>



<p>Founded in 2017 by Anatoly Yakovenko, <a href="https://medium.com/solana-labs/proof-of-history-a-clock-for-blockchain-cf47a61a9274" target="_blank" rel="noreferrer noopener">Solana aims</a> to support all high-growth and high-frequency blockchain applications and to democratize the world’s antiquated financial systems. This means challenging some of the largest traditional financial institutions in the world.</p>



<p>While the SOL price has suffered over the past six weeks, activity on the layer-1 chain remains robust. </p>



<p>According to data compiled by <a href="https://dashboard.chaincrunch.cc/public/dashboard/cc7a0d94-7f70-46f4-aae4-2f8810430931#theme=night" target="_blank" rel="noreferrer noopener">Chaincrunch</a>, the number of transactions, unique wallets, and transaction fees all hover near all-time highs despite the dip in SOL&#8217;s price. The fees to transact on Solana are less than a penny per transaction, which is likely the driving force behind the chains rapid adoption.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="537" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.01.11-PM-1024x537.png" alt="" class="wp-image-12610" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.01.11-PM-1024x537.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.01.11-PM-1024x537.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.01.11-PM-1024x537.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.01.11-PM-1024x537.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.01.11-PM-1024x537.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.01.11-PM-1024x537.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.01.11-PM-1024x537.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.01.11-PM-1024x537.png?w=1418 1418w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Chaincrunch</figcaption></figure></div>



<h3 class="wp-block-heading">Common Solana critiques</h3>



<p>Solana naysayers often point to the lack of decentralization and high concentration of wealth amongst top SOL holders.</p>



<p>Data from <a href="https://solanabeach.io/supply" target="_blank" rel="noreferrer noopener">Solana Beach</a> confirms the latter statement, stating that 80.78% of the supply is held in only 173 wallets. The distribution can be seen in the following pie chart breaking down the percentage of supply held by the top 10, top 50, top 100 and remaining wallets:</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="245" height="288" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.12.34-PM.png" alt="" class="wp-image-12611" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.12.34-PM.png?w=245 245w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.12.34-PM.png?w=219 219w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.12.34-PM.png?w=222 222w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.12.34-PM.png?w=186 186w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.12.34-PM.png?w=68 68w" sizes="(max-width: 245px) 100vw, 245px" /><figcaption>Source: solanabeach.io</figcaption></figure></div>



<p>The former critique which points to the concentration of validators, or registered participants, that can create new blocks to add to the chain. </p>



<p>Last month, I <a href="https://cms.blockworks.co/sol-flips-usdt-in-market-cap-axie-infinity-ronin-dex-goes-live-markets-wrap/" target="_blank" rel="noreferrer noopener">reported</a> that there are currently 1150 Solana validators, and the cost to set one up is north of <a href="https://www.reddit.com/r/solana/comments/lrjr6l/validator_node_economics/" target="_blank" rel="noreferrer noopener">$5,000.</a> For comparison, there are well over 12,000 nodes on the bitcoin network who are visible and it costs less than $200 to set up a BTC node. It is worth noting that the actual node count for the Bitcoin network is likely much higher but is not traceable.</p>



<p>After checking back in today on the number of validators, this number has risen to over 1,300. That is 13% growth in validator count in six weeks time, according to data from <a href="https://solanabeach.io" target="_blank" rel="noreferrer noopener">Solana Beach</a>. </p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="846" height="440" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.20.01-PM.png" alt="" class="wp-image-12612" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.20.01-PM.png?w=846 846w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.20.01-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.20.01-PM.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.20.01-PM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.20.01-PM.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.20.01-PM.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.20.01-PM.png?w=80 80w" sizes="(max-width: 846px) 100vw, 846px" /><figcaption>Source: solanabeach.io</figcaption></figure></div>



<h3 class="wp-block-heading">ETH/BTC note</h3>



<p>The ETH/BTC ratio is a metric to watch for investors who are curious about the performance of the two largest digital assets in relation to each other. When the ratio is going up, it signals that ETH is outperforming BTC.</p>



<p>&#8220;The general view is that while ether is outperforming bitcoin, all is well in the crypto space, with the mood very much risk on given ether’s status as an innovation hub for web3.&#8221; reads a LMAX Digital report. &#8220;But as ether underperforms relative to bitcoin, it suggests the mood has shifted to one in which investors are more comfortable owning bitcoin over ether due to the safe haven, story of value draw of bitcoin.&#8221;</p>



<p>After a rally of 24% up to local highs of .0880, the ETH/BTC ratio has declined 7.19% over the past five days to .0802, according to data from <a href="https://www.tradingview.com/symbols/ETHBTC/" target="_blank" rel="noreferrer noopener">TradingView.</a></p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="612" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-14_14-28-59-1024x612.png" alt="" class="wp-image-12613" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-14_14-28-59-1024x612.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-14_14-28-59-1024x612.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-14_14-28-59-1024x612.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-14_14-28-59-1024x612.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-14_14-28-59-1024x612.png?w=437 437w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-14_14-28-59-1024x612.png?w=366 366w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-14_14-28-59-1024x612.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-14_14-28-59-1024x612.png?w=1153 1153w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Trading View</figcaption></figure></div>



<p>ETH balances on exchanges remain at levels not seen since 2018, implying that investors are looking to hold for the long term. There was a slight uptick over the past few days, according to data from <a href="https://glassnode.com" target="_blank" rel="noreferrer noopener">Glassnode</a>, as some investors have likely taken profits in the face of dicey price action.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_ethereum-percent-balance-on-exchanges-all-exchanges-1024x576.png" alt="" class="wp-image-12614" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_ethereum-percent-balance-on-exchanges-all-exchanges-1024x576.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_ethereum-percent-balance-on-exchanges-all-exchanges-1024x576.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_ethereum-percent-balance-on-exchanges-all-exchanges-1024x576.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_ethereum-percent-balance-on-exchanges-all-exchanges-1024x576.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_ethereum-percent-balance-on-exchanges-all-exchanges-1024x576.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_ethereum-percent-balance-on-exchanges-all-exchanges-1024x576.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_ethereum-percent-balance-on-exchanges-all-exchanges-1024x576.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_ethereum-percent-balance-on-exchanges-all-exchanges-1024x576.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_ethereum-percent-balance-on-exchanges-all-exchanges-1024x576.png?w=1800 1800w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Glassnode</figcaption></figure>



<h3 class="wp-block-heading">Non-Fungible Tokens (NFTs)</h3>



<p>Last month I <a href="https://cms.blockworks.co/eth-btc-on-the-verge-of-breaking-out-nft-market-may-be-stagnating-markets-wrap/" target="_blank" rel="noreferrer noopener">noted</a> that trading volume on OpenSea looks to be on track for its lowest monthly total since July. While that is, in fact, what occurred, OpenSea volume has since rebounded during the month of December, according to data from <a href="https://dune.xyz/rchen8/opensea" target="_blank" rel="noreferrer noopener">Dune Analytics</a>.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="276" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.34.45-PM-1024x276.png" alt="" class="wp-image-12615" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.34.45-PM-1024x276.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.34.45-PM-1024x276.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.34.45-PM-1024x276.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.34.45-PM-1024x276.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.34.45-PM-1024x276.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.34.45-PM-1024x276.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.34.45-PM-1024x276.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.34.45-PM-1024x276.png?w=1077 1077w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: @rchen8 </figcaption></figure>



<p>Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found below:</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="329" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.39-PM-1024x329.png" alt="" class="wp-image-12616" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.39-PM-1024x329.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.39-PM-1024x329.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.39-PM-1024x329.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.39-PM-1024x329.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.39-PM-1024x329.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.39-PM-1024x329.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.39-PM-1024x329.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.39-PM-1024x329.png?w=1234 1234w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure></div>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="288" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.52-PM-1024x288.png" alt="" class="wp-image-12617" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.52-PM-1024x288.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.52-PM-1024x288.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.52-PM-1024x288.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.52-PM-1024x288.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.52-PM-1024x288.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.52-PM-1024x288.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.52-PM-1024x288.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-14-at-2.40.52-PM-1024x288.png?w=1202 1202w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure></div>



<p>If you made it this far, thanks for reading! I am looking forward to catching up tomorrow.</p>



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