- Solana saw strong institutional inflows of $5.7 million, second only to Ethereum and far outpacing other altcoins in the cryptocurrency market.
- Despite the volatility in the crypto market, institutional investors are backing Solana, indicating that many investors see Solana as a promising network with the potential to grow further.
Solana is known for offering extremely fast transactions and low fees, making it one of the most high-profile layer 1 blockchain projects. Recently, Solana has attracted attention by gaining institutional interest and rallying other Altcoins. Last week, Solana received $5.7 million from institutional investors. Although Ethereum remains in the lead with $9.5 million in inflows, Solana stands out, outpacing other altcoins by a substantial margin.
These flows reflect the strong appeal of Solana technology and its place on the market. Especially since institutional investors tend to favor assets that they consider to have solid long-term potential. For Solana to begin a sustainable recovery, it needs to break through the $161 resistance level and hold it as a new “support” level. This conversion from resistance to support would create a stronger price base for Solana to continue its rally, potentially towards targets such as $175 or even $186. However, if Solana fails to hold the $161 support, the price could decline to $155.
In the cryptocurrency market, many altcoins generally follow the lead of bitcoin. When the price of bitcoin rises or falls, other altcoins do the same, creating a correlation pattern of price movements. However, Solana has tended to deviate from this model. This phenomenon, known as “decoupling,” indicates that Solana’s price movements are not always linked to those of bitcoin. On the contrary, factors specific to Solana, such as its technical characteristics, network usage or particular investor interest, may play a more important role in its price behavior.
Over the past month, Donald Trump has made comments about making the United States the “crypto capital of the planet.” The price of bitcoin notably increased by 12%, briefly reaching $71,000, its highest level since June. It is worth noting that the price of SOL fell to less than $10 after the collapse of FTX in 2022. If Trump returns to the White House after spending four years out of power, the price of SOL could reach a new all-time high of 300 dollars.
Institutional investments for Solana
VanEck, an asset management firm, has been bullish on Solana in recent months. In October, VanEck has partnered with Kiln, a digital asset rewards platform, to provide staking solutions as part of VanEck's Solana strategy. As part of this collaboration, Kiln will offer institutional investors a simple and secure method to integrate Solana staking.
In Q3 2024, the Solana ecosystem raised $173 million in funding, an increase of 54% from the previous quarter. This is the highest quarterly total since the second quarter of 2022, indicating growing confidence among investors.
The introduction of Solana's V1.18 upgrade and the implementation of new technologies have improved the efficiency of its transactions. Additionally, the DeFi sector flourished, with the total value locked reaching $5.7 billion, fueled by a surge in interest in DeFi products. Solana price increased by 1% over the past day and is negotiate Currently has $161.34, with a market capitalization of $75.35 billion.
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