Aaryamann Shrivastava
FXStreet
- Solana has been noting inflows from institutional investors, bringing its year-to-date flows to $25 million.
- SOL overtook XRP and Litecoin, which have been making headlines for the SEC lawsuit and halving event, respectively.
- Solana price is up by 5% in the last 24 hours, with the support of its partnership with Shopify.
Even though Solana price action has been weak since the beginning of the year, the cryptocurrency has managed to find its demand among institutional investors. The big wallet holders are liking the asset more than other top altcoins to the point where it is finding more inflows than even Ethereum.
Solana notes institutions' interest
Solana price at the time of writing was up by 5% in the last 24 hours, trading at $21.61, after registering an 18.5% decline in the last ten days. One of the biggest contributing factors has been the recent integration of Solana Pay into Shopify, an E-commerce giant.
Users will be able to pay using cryptocurrencies on the shopping portal with the help of Solana, although initially, only USDC (USD Coin) is supported.
This development also triggered a bullish response from investors, which prevented the altcoin from slipping further. The Relative Strength Index (RSI) shows that SOL was very close to being oversold, last noted back in mid-June. Signs of waning bearishness could be observed on the Moving Average Convergence Divergence (MACD) indicator as well; however, a bullish signal is yet to emerge. This signal may not be too far either since Solana is one of the institutional investors' favorite assets.
SOL/USD 1-day chart
Comparing Solana’s institutional inflow
Since the beginning of the year, SOL has noted higher inflows than the likes of XRP, LTC and even Ethereum.
Ripple and Litecoin were two of the biggest talked about assets owing to the SEC lawsuit and halving event, respectively. However, investors chose to lean into SOL over these assets.
Year to date, Solana has recorded about $25 million worth of inflows, which is more than LTC, SOL, TRX (Tron) and ADA (Cardano) combined. The week ending August 18 did not note any inflows for the asset, but it also did not record any outflows like Litecoin did.
Solana institutional investment
This is a positive sign for the asset, as institutional presence would serve as a major boost to any cryptocurrency. While the likes of Bitcoin and Ethereum will always find support from retail investors, Solana could grow quickly if it remains the institution's top pick.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.