Amid the whirlwind of activity in the cryptocurrency market, Solana (SOL) is increasingly becoming a favorite for institutional investors. Despite the impressive launch of ETH futures ETF in the US, Solana has garnered significant attention with its remarkable weekly inflows, hinting at its growing prominence as a serious Ethereum Layer-1 contender as tweeted by Wu Blockchain, a renowned and influential crypto analyst .
Digital asset investment products saw a total inflow of US$78 million last week, and ETP trading volume also increased by 37% to US$1.13 billion; the ETH futures ETF launched in the US attracted less than $10 million in the first week; Solana saw its largest weekly inflows since…
— Wu Blockchain (@WuBlockchain) October 9, 2023
In the recent weeks, Solana has witnessed substantial institutional inflows, as demonstrated by a staggering $24 million investment a pinnacle that hasn’t been observed since March 2022. This solidifies Solana’s standing, especially when juxtaposed with Ethereum’s recent product ventures. Meanwhile, the broader digital asset landscape also experienced buoyancy, with investment products amassing inflows of $78 million. Notably, Exchange-Traded Products (ETPs) saw their trading volumes rocket by 37%, culminating at a hefty $1.13 billion.
However, the Solana price story isn’t entirely rosy. After an impressive rally last month which saw SOL soar past $23, it has since experienced a retracement, currently hovering around $22.25. While it has receded by 5% in the past day, and 7.6% over the week, SOL still proudly sits as the seventh-largest cryptocurrency by market cap.
Interestingly, technical indicators for Solana remain optimistic. A striking observation is the crossover of SOL’s 30-day exponential moving average above its 200-day counterpart, hinting at a possible breakout soon. Coupled with a robust relative strength index, the buy momentum is evident.
Another feather in Solana’s cap is the doubling of its DeFi Total Value Locked (TVL) since the onset of 2023, currently pegged at a commendable $30.95 million. Nansen, a blockchain analyst, emphasizes the blockchain’s ability to support substantial economic activities. Technological advancements, like the introduction of state compression, have further fortified Solana’s position by drastically cutting down NFT minting costs.
All in all, Solana’s journey is emblematic of the dynamic crypto ecosystem. Competition and innovation continually shape the market landscape.
