Rival Layer-1 system to Ethereum The previous few weeks have seen a significant influx of institutional investors, putting Solana in the spotlight. September saw a huge rally in the price of Solana, pushing it above $23 due to institutional inflows.
At $24 million, Solana had its largest weekly influx in months—a sum not seen since March 2022. This increase in funding solidifies Solana’s standing as the go-to alternative cryptocurrency, especially in light of the most recent Ethereum product releases.
Solana Changes in Value
Additionally, according to CoinShares data, there were inflows of $78 million into digital asset investment products last week, which is the second week in a row that these flows have been positive. Furthermore, during the same period, Exchange-Traded Products (ETPs) saw a 37% increase in trading volume, reaching $1.13 billion.
What Comes Next After Solana (SOL) Records Largest Weekly Institutional Inflows,What Comes Next After Solana (SOL) Records Largest Weekly Institutional Inflows
The price of Solana SOL has undergone a partial retracement after a robust surge in late September that failed to reach $25. The price of SOL has decreased by 5% in the previous day and is now trading at $22.25, with a $9.2 billion market capitalization. The weekly data shows a 7.6% decrease in the price of Solana.
In spite of this, according to market values, Solana is still the seventh-largest cryptocurrency. The current decline in SOL’s price coincides with increased selling pressure on altcoins.
Furthermore, even if SOL’s performance has recently declined, its indications are still positive, suggesting that the losses from the previous day could not cause any appreciable drops in the future. The 30-day exponential moving average of SOL (yellow) has crossed above its 200-day average (blue), indicating a noteworthy development that may lead to a breakout in the near future.
Additionally, even if the altcoin’s purple relative strength index dropped from 75 at the start of the month to about 60 at this point, it is still comfortably above the 50 threshold. This implies that the purchasing momentum is still present.
Furthermore, since the beginning of September, SOL’s support level (green) has increased significantly, pointing to a trend of consolidation around successively higher levels that strengthens the altcoin’s position.
Solana’s Strong DeFi Performance
The Solana blockchain’s total value locked, or TVL, is at $30.95 million, according to a research released last week by blockchain analytics company Nansen. Starting in 2023, the DeFi TVL on Solana has almost doubled.
According to Nansen, Solana’s potential for thriving economic activity is demonstrated by the rising number of transactions and TVL. Furthermore, Solana’s technological infrastructure has seen major problems that have been successfully handled through advancements in fee markets and state reduction.
The cost of minting NFTs has significantly decreased as a result of the use of state compression, in particular. Previously, it would have cost around $253,000 to create one million NFTs on the Solana network. But once state compression was implemented, this cost has dropped significantly to just $113.
What Comes Next After Solana (SOL) Records Largest Weekly Institutional Inflows,What Comes Next After Solana (SOL) Records Largest Weekly Institutional Inflows,What Comes Next After Solana (SOL) Records Largest Weekly Institutional Inflows