Solana’s Supply Crunch: A Bullish Setup Fueled by USDC Inflows

As of December 4, 2025, Solana (SOL) is demonstrating a compelling bullish technical and on-chain structure, anchored by its successful defense of the critical $120 support level. The cryptocurrency's market dynamics are being reshaped by two powerful, concurrent forces: a massive influx of capital into its ecosystem and a tightening supply on exchanges. On-chain data reveals that inflows of the stablecoin USDC have surged past a staggering $2.12 billion. This significant capital injection suggests strong buying power and investor confidence poised to enter the SOL market. Simultaneously, the available supply of SOL on centralized exchanges is contracting sharply. This combination—rising demand-side liquidity (USDC) and a shrinking readily available supply (SOL)—is creating a classic supply crunch scenario, a fundamental condition that often precedes substantial price appreciation. Technically, the market has established clear levels that define the immediate battle between bulls and bears. The $120 level has solidified as a major support floor, a line in the sand that buyers are actively defending. On the upside, resistance is anticipated at the $135 and $142 levels. A decisive break above these barriers could open the path for a more significant rally. Interestingly, despite these profoundly bullish on-chain signals—the USDC inflow and supply drain—demand in the derivatives market remains notably subdued. This divergence indicates that the current bullish pressure is primarily driven by spot market accumulation and fundamental shifts rather than Leveraged speculation, which can often lead to volatile and unsustainable moves. This underlying strength, characterized by real capital movement and supply absorption, paints a robust picture for Solana's medium-term trajectory as the market shows early signs of re-accumulation and a potential trend reversal.

Solana Holds Key $120 Support Amid USDC Inflows and Supply Crunch

Solana (SOL) maintains its $120 support level as on-chain data reveals a liquidity shift. USDC inflows have surged past $2.12B while SOL supply on exchanges contracts sharply, creating a potential supply crunch.

Key technical levels now structure the market: $120 acts as support, with $135 and $142 as resistance. Derivatives demand remains subdued despite these bullish on-chain signals.

The market shows signs of re-accumulation after recent speculation cooled. A return of buyer momentum will be critical for SOL to capitalize on its structural advantage of shrinking supply and growing stablecoin liquidity.

Solana Holds Above $138 as Traders Eye Breakout Toward $180 Resistance

Solana (SOL) stabilizes at $138.41, marking a 9.06% gain as buyers consolidate above critical support. The $138–$140 range now serves as a springboard for potential upside toward the $165–$180 resistance cluster, a zone that has capped rallies since April.

Volume patterns suggest disciplined accumulation rather than speculative frenzy. Analysts note the compression resembles SOL’s Q1 2023 breakout structure, where similar consolidation preceded a 70% surge.

Market participants await confirmation of a decisive close above $142 to confirm bullish momentum. Failure to hold $138 risks retesting the $120–$125 liquidity zone.

PYUSD Supply Surges 216% in Under 90 Days as PayPal Expands Across Multiple Blockchains

PayPal’s USD stablecoin (PYUSD) has seen its supply skyrocket by 216% in less than three months, reflecting surging demand in Web3 applications. The stablecoin’s market capitalization has ballooned from $1.28 billion in September 2025 to $3.8 billion, fueled by strategic multichain expansion and new integrations.

Key drivers include PYUSD’s deployment on Solana and Arbitrum via LayerZero technology, enabling seamless cross-chain transactions. Listings on KuCoin and Venmo, alongside PayPal’s new "links" service, have further accelerated adoption. DeFiLlama data underscores PYUSD’s position as one of crypto’s fastest-growing stablecoins.

South Korean Crypto Exchange Loses $35 Million in 15-Minute Hot Wallet Hack

A South Korean cryptocurrency exchange suffered a rapid security breach, losing $35 million as attackers drained hundreds of hot wallets within 15 minutes. The stolen assets included USDC, BONK, SOL, ORCA, RAY, PYTH, and JUP. While the exchange managed to freeze over half of the funds—notably ₩23 billion KRW in LAYER tokens—the remainder was irretrievable.

Analysis reveals the attack exploited the hot-wallet signing flow, bypassing smart contract vulnerabilities or user errors. The breach underscores growing risks for centralized exchanges, particularly those with multi-chain withdrawal systems and complex cloud infrastructures. Real-time detection tools like Hexagate and GateSigner could mitigate such losses.

This incident reflects a broader trend of increasingly frequent and costly breaches targeting crypto custodians. Sophisticated attackers are leveraging automation to execute rapid, large-scale thefts, exposing systemic vulnerabilities in exchange security protocols.