8% SOL Staking Rewards Are Quietly Draining Ethereum’s Liquidity – Here’s Proof

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• SOL could hit $200 by May as call options grow cheaper with falling implied volatility levels recently.
• Whale buying slowed near $160 resistance; breaking this level may trigger next SOL price surge.
• SOL outperformed ETH by 28% in April, maintaining strong relative strength in current market cycle.

Greg Magadini, Director of Derivatives at Amberdata, recently projected that Solana (SOL) could reach $200 by the end of May. His analysis points to several factors supporting this outlook, including market structure, volatility trends, and shifting capital flows between cryptocurrencies.

Magadini highlighted that dealers—market makers facilitating trades—are positioned favorably at the $200 gamma level, making it a key price point to monitor. Gamma levels indicate where dealers adjust their hedging activity, often influencing short-term price movements.

He also noted that implied volatility—a measure of expected price swings—has dropped considerably compared to previous weeks. Lower volatility makes call options (bullish bets on price increases) cheaper to purchase. Magagadini suggested that buying $200 call options expiring May 30 presents a favorable risk-reward setup.

Solana’s Outperformance Over Ethereum

ETHNews confirms that Solana has been gaining ground against Ethereum (ETH) since late 2023. In April, SOL’s price rose roughly 28% more than ETH’s. This trend has held within an ascending channel, a technical pattern indicating sustained relative strength. Unless this pattern breaks, SOL may continue outperforming ETH in the near term.

Whale activity has also supported SOL’s price. The Whale vs. Retail Delta indicator, which tracks large investor positions, turned positive, signaling increased buying from high-net-worth traders. However, whale accumulation slowed as SOL approached $160, a key resistance level. Clearing this hurdle could pave the way for a push toward $200.

Growing Capital and Institutional Interest 

Solana’s network activity reinforces its bullish case. Daily active addresses recently surpassed 6.2 million, the highest since February 2025, while daily transactions exceeded 96 million. These figures suggest strong adoption, which typically drives demand for SOL.

Stablecoin liquidity on Solana has also expanded, with nearly $12.6 billion in circulation. This liquidity supports decentralized finance (DeFi) activity, including lending and staking. Notably, Solana’s staking market capitalization has surpassed Ethereum’s, with 64.86% of SOL’s supply locked and an annual yield above 8%.

Institutional investors are taking notice. Galaxy Digital, led by Mike Novogratz, sold $106 million worth of Ethereum to acquire over 750,000 SOL. Other firms, including Astra Fintech and Janover, have allocated millions to SOL purchases and staking. These moves resemble early corporate Bitcoin accumulation, suggesting long-term confidence in Solana’s infrastructure.

Solana (SOL) is currently trading at $147.72, showing a slight -0.22% daily loss, but still maintaining +7.09% growth over the past week and a +14.06% rise over the past month. Despite this, SOL is down -21.81% year-to-date and -17.68% over the past 6 months, reflecting ongoing volatility in the broader crypto market. Solana’s market capitalization stands at $76.41 billion, with 24h trading volume of $3.69 billion, highlighting strong liquidity.

From a technical view, SOL faces immediate resistance at $160. Analysts note a potential cup and handle formation, a typically bullish pattern. However, if SOL fails to break above $160, it could risk a drop to $120–$100.

Current support zones are around $145.66, where buyers have recently stepped in. Indicators are neutral, and Solana is trading within an ascending channel, suggesting consolidation before a potential breakout.

On the fundamental side, Solana continues expanding its influence with initiatives like the Solana Policy Institute, aiming to shape future crypto regulations around stablecoins and market structure. Institutional interest is rising, and ecosystem upgrades are positioning Solana as a serious Ethereum competitor despite past network reliability concerns.

If SOL breaks above $160 with strong volume, it is projected to reach $175.30 within the next 4–5 days, driven by bullish pattern formations and increasing institutional engagement.