Institutional Inflows into Solana-Based Investment Products Reach Record Highs
Last week saw a significant surge in institutional inflows into investment products for digital assets based on Solana, particularly as these investment products marked the seventh consecutive week of inflows.
Digital asset investment products have seen inflows since the end of September and throughout October, reflecting the optimistic sentiment in the broader crypto market. As a result, inflows into Solana have been steadily increasing, with a 15% increase last week compared to the previous week.
Solana has experienced an incredible surge in recent times, with the native SOL token’s price skyrocketing by over 160% in the past 30 days due to broader purchases in the crypto industry. Despite ongoing consolidation in Bitcoin, the cryptocurrency has surged by 33% in 7 days, outperforming Ethereum, XRP, and other cryptocurrencies during the same period.
According to the latest weekly report from CoinShares, inflows into digital asset investment products do not reflect this consolidation, as they reached $293 million last week. Solana saw inflows of around $12.4 million, compared to $10.8 million in the previous week, bringing the total inflows for the year to over $120 million.
In a broader sense, the total assets under management of exchange-traded products in the sector have surpassed the historic $1 billion mark and now stand at $1.14 billion. This was particularly fueled by inflows into Bitcoin investment products, which accounted for around 19% of the cryptocurrency’s total trading volume last week.
Bitcoin saw inflows of $240 million last week, bringing the total inflows for the year to $1.08 billion. On the other hand, Ethereum experienced inflows of $49 million, while Litecoin and XRP saw outflows of $0.3 million and $3.1 million, respectively.
Can SOL Reach $100?
Solana is well on its way to reaching the $100 mark, as indicated by technical analysis and strong bullish price movements and institutional inflows. Solana is now seeking to shake off the FTX debacle and has surged by over 520% since the beginning of the year.
On-chain data also shows that Solana’s DeFi TVL has increased by $136 million since early November. According to DeFiLlama, the total TVL for DeFi protocols based on Solana now stands at $546 million.
At the time of writing, Solana is trading at $58, still far from its all-time high of $260. However, a surge of over 80% in November has been predicted. If the cryptocurrency’s momentum continues at this pace, a return to the $100 price target seems within reach.
The above price chart from Tradingview.com illustrates the recent price recovery of SOL, further indicating the potential for a continued upward trend.
In conclusion, the surge in institutional inflows into Solana-based investment products reflects the growing interest and optimism surrounding the cryptocurrency. With the ongoing positive momentum and increasing adoption of Solana in the DeFi space, the cryptocurrency’s potential to reach the $100 mark is becoming increasingly plausible.