Solana Price Action Intensifies as Institutional Demand Spikes

Adekunle Joshua
4 Min Read

Solana started the year at around $200 and declined along with other crypto tokens like AVAX through the year’s first half. However, SOL has finally gained momentum as the institutional adoption is rising

Solana Price Analysis

1d chart of the solana /usdt pair, showing the cryptocurrency’s downtrend and consolidation
1d sol/usdt chart | source: tradingview

Solana currently trades at $32.27 and has dropped 79% from its ATH. Around Mid august, the cryptocurrency reached a high of around $47, forming the tip of an ascending channel it had been in since late July, as illustrated by the 4-h chart below.

4h chart of the solana /usdt pair, showing an ascending channel and breakout
4h sol/usdt chart| source: tradingview

Following a bearish breakout from the channel the pair formed, prices declined to the $30k level and are currently in a range around the $35 – $30 mark.

1h chart showing the bottom and price consolidation of solana around the $30 mark.
1h sol/usdt chart| source: tradingview

The overall trend of Solana is down, but things are expected to change soon.

Institutional Bets On Solana Surges

Despite the setbacks Solana has experienced since 2021, institutional bets on the token are starting to grow, as the total transactions conducted on the network have grown to $100 million.

This comes when institutional interest in cryptocurrencies grows despite the current bear market.

According to data from explorer.solana.com, the chain has processed transactions worth about 96.8 million. A figure that is ridiculously close to the $100 million mark.

The network currently processes about 3000 transactions every second, making it easy to see where these figures are coming from. Even though this “3000 transactions per second” figure is well below the network’s touted capacity of 50,000 transactions per second.

The Solana network uses a delegated Proof-of-Stake mechanism to order its transactions. This mechanism is known as Proof-of-History and uses verifiable delay functions in its hashing, enabling it to handle thousands of transactions per second.

Charts showing solana’s transaction count per second, and total transaction value (top right)
Charts showing solana’s transaction count per second, and total transaction value (top right) | source: explorer. Solana. Com

As mentioned earlier, the global cryptocurrency market is in a downtrend. Bitcoin, the benchmark cryptocurrency, has dropped about 60% from its ATH and is showing no signs of stopping.

As a result, investors’ interest in bitcoin and Ethereum has reduced over the past three months. They are now looking for alternative investments in other altcoins like Solana, Cardano, and Ripple Coin (XRP).

For example, in the past week, products on the Solana network experienced inflows of about $500,000. Products related to Ripple Coin saw inflows of $200,000, and the same applies to Cardano, with inflows of about $100,000. On the other hand, multi-asset products saw inflows of a whopping $3.3 million.

 

Disclaimer:The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR  (do your own research)

 

 

 

 

 

 

 

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My passion lies in crafting compelling content that educates and engages audiences in the dynamic world of crypto and blockchain. With extensive experience in technical writing, I've helped numerous founders, investors, and startups achieve their goals. My expertise extends beyond just crypto, encompassing finance, marketing, and new-age technologies like AI and Cloud.
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