Solana January 2025 Update

Momentum Metrics

Solana registered $367M in net bridge inflows from other ecosystems in January 2025. This figure was surpassed by Ethereum, Base, and Hyperliquid, which saw $2.1B, $758M, and $413M in net inflows, respectively. To note, Ethereum saw $1.35B in net flows from Arbitrum on January 29th as USDT was auto-migrated to Ethereum to facilitate the transition of the new USDT0 infrastructure, which will function similarly to Circle's CCTP. Without these flows, Ethereum would have recorded $768M in net inflows during January, which would still put it at the top. 

Market positioning reflects mixed sentiment. On the one hand, SOL open interest across centralized exchanges reached an all-time high of almost $8B on January 19th but closed the month at around $6B, the same levels seen during the November uptrend. On the other hand, volatility and macro uncertainty have driven funding rates to their lowest point since the US presidential election was held on November 5th, signaling traders are de-risking. 

Network Health

It was a busy month for Solana Improvement Documents (SIMDs), affecting key areas from SOL token emissions to validator and staker profitability.