Solana News: Long-Term Investors Show Signs of Anxiety as NUPL Indicates Cautious Sentiment

Long-term SOL investors are exhibiting signs of anxiety, as reflected in Solana’s Long-term Holder Net Unrealized Profit/Loss (NUPL) metric. Read on to learn more about this cautious sentiment and its potential impact on SOL’s market performance.

Solana’s (SOL) NUPL Flashes Signs of Caution

Long-term SOL investors are showing signs of anxiety as Solana’s Long-term Holder Net Unrealized Profit/Loss (NUPL) indicates a cautious sentiment. The NUPL value, fluctuating between 0.4 and 0.6, suggests that while some holders are in profit, there are growing concerns about potential losses. SOL recently broke out of an inverse head-and-shoulders pattern, hinting at a possible bullish reversal. However, the trend towards the lower end of the NUPL spectrum since early February highlights investor caution. During the same period, SOL’s price fell visibly.

Solana's Inflation Rate Surges 30.5% After SIMD 96 Implementation

Solana’s SOL token experienced a 30.5% increase in annualized inflation following the implementation of SIMD 96 on February 12th. The change decreased the daily SOL burn from 18,000 to 1,000, affecting the real economic value distributed to token holders. SIMD 96 adjusted the fee structure, rewarding validators with 100% of collected fees instead of using half for SOL burning. The proposal, introduced by Multicoin Capital's Tushar Jain and Vishal Kankan, aimed to boost SOL’s inflation if the staked amount fell below 50% of the supply, and vice versa. Onchain data revealed a gradual decrease in the token holder REV percentage from 72% to 40%.

Libra Coin Scandal: Meteora Co-Founder Ben Chow Resigns

The Libra Coin scandal has rocked the Solana ecosystem, leading to the resignation of Meteora Co-Founder Ben Chow. The scandal began with the chaotic launch of the LIBRA memecoin, which raised concerns about insider trading, political ties, and significant investor losses. Jupiter’s founder, Meow, announced Chow's resignation on February 18, citing a lack of judgment and care in Meteora’s decisions. Crypto influencer Moty alleged insiders profited during the $LIBRA token launch, but both Chow and Meow denied any wrongdoing.

Solana (SOL) Falls Below Major Support Level

Solana (SOL) has dipped below a key support level, signaling a potential shift in market trends and hinting at further price declines. The altcoin, which had maintained an ascending parallel channel since 2023, broke below the lower line of the channel for the first time in the past year. This move suggests bears have taken control of the market, indicating a possible end to the sustained bullish trend.