- Solana has seen strong institutional inflows of $5.7 million second only to Ethereum and far exceeding other altcoins in the crypto market.
- Despite the crypto market鈥檚 volatility, institutional investors are supporting Solana, this indicates that many investors view Solana as a promising network with the potential to grow further.
Solana is famous for offering blazing fast transactions and low fees making it one of the most prominent layer-1 blockchain projects. Recently, Solana has captured the spotlight by gaining institutional interest and rallying other altcoins. Last week, Solana saw inflows of $5.7 million from institutional investors. Although Ethereum still leads with $9.5 million in inflows, Solana stands out, surpassing other altcoins by a substantial margin.
These inflows reflect the strong appeal of Solana鈥檚 technology and its place in the market, especially as institutional investors tend to favor assets they see as having solid long-term potential. For Solana to initiate a sustained recovery, it needs to break through the $161 resistance level and then hold it as a new 鈥渟upport锟?level. This conversion from resistance to support would create a stronger price base for Solana to rally further, potentially toward targets like $175 or even $186. However, if Solana fails to hold $161 as support, the price could retreat to $155.
In the crypto market, many altcoins typically follow Bitcoin鈥檚 lead, when BTC鈥檚 price rises or falls, other altcoins often do the same, creating a pattern of correlated price movements. However, Solana has displayed a tendency to diverge from this pattern. This phenomenon, known as 鈥渄ecoupling,锟?indicates that Solana鈥檚 price movements aren鈥檛 always tied to Bitcoin鈥檚. Instead, factors specific to Solana such as its technical features, network usage, or unique investor interest may play a more significant role in its price behavior.
In the past month, Donald Trump has made comments about making the US the 鈥榗rypto capital of the planet锟?notably, Bitcoin鈥檚 price grew by 12 percent briefly rising to $71,000, its highest since June. It is worth noting that SOL鈥檚 price fell to below $10 after the collapse of FTX in 2022. If Trump returns to the white house after spending four years out of power, the price for SOL may hit a new all-time high of $300.
Institutional Investments for Solana
VanEck, an Asset Management company, has been bullish on Solana for the past several months. In October, VanEck partnered with Kiln, a platform for digital asset rewards, to provide staking solutions within VanEck’s Solana Strategy. As part of this collaboration, Kiln will offer a simple and secure method for institutional investors to integrate Solana staking.
In the third quarter of 2024, Solana’s ecosystem raised $173 million in funding, a 54% rise from the previous quarter. This is the highest quarterly total since Q2 2022, indicating a growing confidence among investors.聽
The introduction of Solana’s V1.18 upgrade and the implementation of new technologies enhanced its transaction efficiency. Additionally, the DeFi sector flourished, with the total value locked reaching $5.7 billion, fueled by a surge in interest in DeFi products. Solana鈥檚 price has risen by 1% in the past day and is currently trading at $161.34 with a market cap of $75.35 billion.
