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Solana (SOL) inflation stalls 2025 ATH breakout as Avalanche (AVAX) buzz fades: trading take from @bobbyong | Flash News Detail | Blockchain.News
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8/9/2025 3:12:52 PM

Solana (SOL) inflation stalls 2025 ATH breakout as Avalanche (AVAX) buzz fades: trading take from @bobbyong

Solana (SOL) inflation stalls 2025 ATH breakout as Avalanche (AVAX) buzz fades: trading take from @bobbyong

According to @bobbyong (source: X, Aug 9, 2025), the once-hyped Solunavax trio has diverged: LUNA is no longer in play, SOL is struggling to clear its all-time high (ATH) amid inflation concerns, and AVAX has seen a drop in market chatter, indicating weaker narrative momentum (source: X, Aug 9, 2025). For traders, this points to monitoring relative strength in SOL versus AVAX and being cautious with narrative-driven setups as liquidity and attention concentrate in SOL while AVAX interest appears to wane (source: @bobbyong on X, Aug 9, 2025).

Source

Analysis

Reflecting on the once-hyped 'Solunavax' trio in the cryptocurrency market, a recent tweet from Bobby Ong highlights a nostalgic look back at Solana (SOL), Terra (Luna), and Avalanche (AVAX). These projects captured immense excitement during the 2021 bull run, promising high-speed blockchains and innovative ecosystems. However, as Ong notes, Luna has long since collapsed, Solana is grappling with inflationary pressures preventing it from surpassing its all-time high, and Avalanche seems to have faded from the spotlight with minimal chatter in trading communities today.

Solana's Struggle with Inflation and ATH Resistance

Solana, often seen as the flag bearer among the trio, has faced significant challenges in reclaiming its peak performance. Its all-time high of approximately $260 was achieved in November 2021, during a period of explosive growth in decentralized finance (DeFi) and non-fungible tokens (NFTs). Fast forward to recent trading sessions, and SOL has been trading in a range-bound pattern, struggling against key resistance levels around $180-$200 as of mid-2024 data points. Inflationary tokenomics have diluted supply, with ongoing emissions contributing to selling pressure. Traders monitoring on-chain metrics, such as the total value locked (TVL) in Solana's ecosystem, which hovered around $5 billion in early 2025 according to DeFi Llama reports, indicate resilient but not explosive growth. For those eyeing trading opportunities, SOL's 200-day moving average acts as a critical support near $120, suggesting potential buy zones during dips. However, breaking past the ATH would require reduced inflation impacts and positive catalysts like network upgrades or increased institutional adoption. Volume analysis shows average daily trading volumes on major pairs like SOL/USDT at around 2-3 billion USD in recent months, per exchange data, reflecting sustained interest but not the frenzy of 2021.

Avalanche's Quiet Phase: Trading Implications and Opportunities

Avalanche (AVAX), once celebrated for its subnet architecture enabling scalable applications, has indeed seen diminished chatter, as Ong points out. Its ATH of about $144 in November 2021 has not been approached closely, with prices stabilizing around $20-$30 in 2024-2025 periods based on historical charts. This lack of buzz correlates with lower social sentiment scores on platforms like LunarCrush, where AVAX mentions have dropped by over 50% compared to peak hype periods. From a trading perspective, AVAX presents intriguing opportunities in undervalued altcoin plays. Key support levels sit at $18, with resistance at $35, offering swing trading setups for those betting on a revival through partnerships or layer-2 integrations. On-chain data reveals a steady but modest TVL of around $1 billion, signaling potential for growth if market sentiment shifts. Cross-market correlations show AVAX moving in tandem with Ethereum (ETH) during rallies, providing hedging strategies against broader crypto volatility. Institutional flows, as tracked by reports from firms like Grayscale, indicate minor allocations to AVAX, hinting at upside if adoption accelerates.

The downfall of Terra (Luna) in May 2022 serves as a cautionary tale for the group, wiping out billions in value and eroding trust in high-yield protocols. This event reshaped trading strategies across the board, emphasizing the need for robust risk management. In today's market, with Bitcoin (BTC) influencing altcoin movements, traders should watch for correlations: SOL and AVAX often amplify BTC's 5-10% daily swings. Broader implications include monitoring inflationary trends in layer-1 tokens, where excessive supply can cap upside potential. For long-term holders, staking yields on Solana (around 6-7% APY) and Avalanche (7-9% APY) offer passive income streams, but volatility remains high. As crypto markets evolve, the 'Solunavax' narrative underscores the importance of diversification and staying attuned to on-chain indicators like active addresses and transaction volumes, which for SOL reached peaks of 1 million daily in Q1 2024. Ultimately, while hype has waned, strategic trading in these assets could yield rewards amid potential 2025 bull cycles, driven by regulatory clarity and technological advancements.

Exploring cross-market opportunities, Solana and Avalanche's performance ties into stock market trends, particularly tech-heavy indices like the Nasdaq, where AI and blockchain intersections boost sentiment. For instance, if AI tokens surge due to advancements in decentralized computing, SOL's high-throughput network could benefit, creating arbitrage plays between crypto and equities. Risks include regulatory crackdowns, as seen in past SEC actions, which could trigger sell-offs. Traders are advised to use tools like RSI (currently neutral at 50-55 for both SOL and AVAX) and MACD crossovers for entry points, ensuring positions align with overall market liquidity, which has improved with ETF approvals boosting inflows.

Bobby Ong

@bobbyong

Co-founder & COO @coingecko and @geckoterminal. Bootstrapping in the crypto space since 2013.

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