The SOL token supply on large exchanges is at a high point, making some analysts believe changes may soon happen in the market for Solana investors. The number of tokens dropped by almost a third, from 37.22 million in early March to 27.01 million. SOL’s exchange supply is close to its lowest amount in October of last year. Large exchanges like Binance, Coinbase, and Kraken have seen big withdrawals as well.

Key Takeaways:

• The number of SOL tokens on the exchange fell 27.4% to 27.01 million since March. This is even lower than what we saw in October 2022.
• Many ETFs listing SOL are causing demand for the token to rise. Spot ETFs should have a 90% likelihood of approval by 2025, Bloomberg predicts.
• About 64% of the SOL currently in use is blocked from being traded. Looking after popular blockchains means getting the chance to earn rewards.
• We can tell from whale accumulation patterns that big investors are making planned buys. Lots of SOL tokens moved into unknown wallets from the biggest exchanges

Market implications of reduced supply

Higher transaction costs shown by a narrower exchange usually mean investors are more likely to keep their assets. Currently, SOL traders are not eager to sell their tokens. This kind of behavior commonly comes before big changes in the price of a cryptocurrency.

According to Murphy, the SOL price is expected to move between $162 and $176 during September. Here, there is a lot of accumulation taking place that could backup prices. Alternatively, the same zone can create obstacles when the price starts to go up.

The analyst feels breaking the $176 level might ease fears of supply holding the price down. If such an advance is achieved, Solana’s price action may widen for its holders.

Institutional demand drives outflows

Several things are causing the available supply of SOL to shrink. The interest in Player Finance has grown after several recent ETF filings. Grayscale, Fidelity and Franklin have each asked to create a Solana spot ETF.

Bloomberg analysts expect these ETFs to be approved by more than 90% of voters by 2025. With this added support, more people are interested in getting SOL tokens. This is why we see more crypto tokens leaving exchanges and being moved to safer custody options.

With these updates, Solana is moving towards a wider audience on the financial market. Having a broader view, regular financial institutions are now seeing the benefits SOL provides.

Staking activity reaches new heights

Staking numbers have gone up significantly all across the Solana ecosystem. 64% of SOL are at the moment being staked for rewards. Because the staking ratio is so high, it takes much of the tokens out of active trading markets.

Many more users have joined to use Raydium, Jito and Marinade. Recently, protocols have seen a major increase in their Total Value Locked figures. By using them, people can stake SOL to earn rewards for holding the tokens.

Moreover, yield farming is now becoming part of the wider ecosystem. Before starting these earning activities, people need to move their tokens from exchanges.

Meme coin surge impacts trading patterns

Meme coins built on the Solana network have received a lot of attention lately. Over 92% of activity on Solana’s decentralized exchanges is done using these tokens. SOL is now being traded more on decentralized markets as meme coins continue to drive up interest.

The amount of DEX volume on the Solana network grew by 90% after April 2025. Total Value Locked in the whole network increased by 54% in that time. People are moving toward using blockchain for trading.

Solana is gaining attention from the market for its quick transaction speed. Many choose this network for its speed when buying and selling meme coins often.

Whale accumulation patterns emerge

There has been a major increase in how much large investors buy SOL. Lookonchain and Whale Alert show there are large amounts of Ethereum being withdrawn from exchanges by big investors.

A total of 374,000 SOL was moved from Binance to wallets that were not publicly identified on April 21. Another batch of 145,000 SOL moved from Kraken to new addresses on May 2. It seems sophisticated investors are intentionally gathering up these stocks.

The largest reductions in SOL balances occurred on Binance and Kraken among significant exchanges. Such a pattern shows that investors representing big organizations are buying much of the supply.

Conclusion: SOL Supply on CEX Falls

Despite there being few SOL tokens available, the crypto market is still expressing interest since the trading volume has risen to about $4 billion. With demand outpacing supply and strong underlays, it looks likely BTC will experience additional growth. At the same time, investors need to pay attention to the $176 resistance level.