The demand in the cryptocurrency market has recently cooled, and this is showing up in the momentum of several leading cryptocurrencies. One of the most precise demand-side indicators used to assess the changing sentiment in the crypto space is called Hot Capital. Hot Capital tracks recent capital flows within the crypto market. More accurately, it measures the difference in a cryptocurrency’s market capitalization over a very short time frame, anywhere from the past 24 hours to the past week. When Hot Capital is plummeting, that means something is going on that isn’t exactly positive for the demand side of the equation, and that’s what we see happening right now across several major coins. Bitcoin and Ethereum Experience Steep Declines The most apparent declines are in Bitcoin (BTC) and Ethereum (ETH), two of the largest and most powerful cryptocurrencies in the market. Bitcoin’s Hot Capital has had a sharp drop off—77.59%, to be exact—from a little over $100 billion to just under $25 billion. That is a figure that might as well be written in crayon, when compared to the Bitcoin Hot Capital figure as of December 2021. This is a clear signal—one that surely resonated through the trading pits and whispered from ear to ear during the 2022 holiday season—that overall demand and enthusiasm from investors have shifted. Ethereum has not performed significantly better, with its Hot Capital plummeting 52.51% from $11.82 billion to $5.62 billion. While this decline is not quite as severe as that of Bitcoin, it nonetheless illustrates a general downturn in enthusiasm for the second-largest cryptocurrency by market capitalization. The decreases in Hot Capital for Bitcoin and Ethereum hint that the latest price increases these two coins have enjoyed are starting to lose momentum. Although both cryptocurrencies experienced tremendous growth over the past year—especially in December, when they hit all-time highs—the latest data suggest a change in market sentiment that could push these two coins into a sideways trading pattern or an outright retracement. Solana Shows Resilience Amid Declining Capital Flows Even though Bitcoin and Ethereum are not faring well, Solana (SOL) has displayed a comparative sturdiness. Its Hot Capital has also declined, but it hasn’t done so at nearly the same pace as BTC and ETH. Solana’s Hot Capital fell by 25.44%, from $15.82 billion to $11.80 billion. This decline is not nearly as intense as the two primary cryptocurrencies’ dramatic downturns, which at this point seems to suggest that Solana’s Hot Capital may be displaying better stability and demand than Bitcoin and Ethereum. Hot Capital (1d–1w + 24h Realized Cap) tracks recent capital flows, a key demand-side momentum signal. A sharp drop signals fading demand: https://t.co/jJMpbuAMBb $BTC : $100.28B → $22.47B (-77.59%) $ETH : $11.82B → $5.62B (-52.51%) Momentum has cooled sharply since… pic.twitter.com/Wt6M8USNDb — glassnode (@glassnode) February 18, 2025 Solana’s market standing seems to be a result of ongoing development, tech improvements, and adoption that is keeping Solana’s capital relatively warm. That warm capital means investor confidence hasn’t plummeted, and it sets Solana apart from other large cryptocurrencies in the current climate. The fact that we’re in a bear market hasn’t stopped Solana’s growth, as seen in both on-chain activity and its price—it hasn’t sunk nearly as much as some of its large-cap counterparts. And again, Solana’s development team isn’t resting on its laurels; they’re ramping up for a big push this fall. Mixed Momentum for TRON and TON Unlike Solana’s relative resilience, TRON (TRX) and TON (The Open Network) have exhibited varied demand momentum. TRON’s Hot Capital has tumbled by 71.34%, from $2.97 billion to $0.85 billion. This seems to mirror the sort of trend we see in Bitcoin and Ethereum, where interest and investment seem to be sharply dropping. In Bitcoin’s case, the price might be viewed as holding steady, but it’s apparent that somewhere between May and now, demand seems to have fallen off a cliff. Conversely, TON, which is the native cryptocurrency of the Telegram Open Network, has contracted less seriously in Hot Capital. TON’s Hot Capital dropped by 40.86%, from $5.21 billion to $3.08 billion. This is still a significant decline, but it isn’t as severe a downturn as TRON has experienced, suggesting that demand for TON may be holding up better than for TRON in the current market. The differing fortunes of TRON and TON reflect their market appeal and levels of adoption. TRON has been experiencing diminished capital inflows and accounts for only 1% of total crypto market revenues. On the other hand, TON might have a bright future. TON’s parent company is the popular messaging platform Telegram, which has a great deal of user engagement. This might drive more interest in the coin over time. Looking Ahead: The Market’s Shifting Sentiment The most recent Hot Capital data highlights a widespread dilution of demand for a number of cryptocurrencies, with Bitcoin and Ethereum showing the most pronounced downturns. In this context, Solana really stands out for its relative stability. Meanwhile, TRON and TON seem to reflect quite different stories. Altogether, though, these patterns suggest that investor sentiment has shifted and that the exuberance driving what remained of the 2023 rally may be behind us. The Inflation Reduction Act is a landmark piece of legislation that propels the U.S. into a clean energy economy. Altogether, the act provides $370 billion in clean energy and climate investments over the next 10 years. On top of that, the act is funded with provisions to raise revenue—most notably, by taxing corporate polluters and ensuring wealthy individuals pay their fair share of taxes. And all of this translates into the creation of a clean energy economy that is accessible to all: low-, moderate-, and middle-income families; communities of color; and indigenous communities. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: olegking/ 123RF // Image Effects by Colorcinch
