The capital inflow has surpassed rivals like Ethereum and Cardano.
Solana adoption is growing, while many experts claim the platform is a good long-term investment.
Technical indicators suggest a continuation of the rally.
YEREVAN (CoinChapter.com) – Smart contract platform Solana has rocketed throughout August and beyond with eye-watering speed and gained 828% from July 21 to Sep. 9. The rally halted after establishing a new all-time high ($216) and the platform’s native SOL consolidated for the rest of September. However, there are several reasons to back a bullish stance on Solana for the upcoming month.
#1 Capital inflow
Solana is an attractive investment asset, judging by the positive statistics. According to the Digital Asset Management Review, the weekly net inflows were positive in September across the crypto sector as a whole. However, Solana took the silver after Bitcoin’s gold and one-upped its main rival Ethereum, the largest smart contract platform.
Solana’s average weekly net inflow stood at $17.8 million.
Swiss digital asset issuer Valour expanded its ETPs (exchange-traded products) with Solana on Sep. 14, after launching Cardano and Polkadot ETPs earlier in 2021.
Valour commented on the launch and said they seek to make the digital asset more accessible via mainstream channels. This way investors can gain exposure to SOL through their bank or broker.
“We have seen tremendous interest in the Solana ecosystem and this product is testament to the team’s ability to rapidly respond to that demand, not only by bringing innovative products to market but the most cost-effective for investors.”
Most recently, on Sep. 20, another asset management firm, 21Shares also launched Solana ETP, offering its clients exposure to the asset. The platform enabled users to “earn additional yield through baking rewards by validating transactions on the Solana blockchain”.
NFT (non-fungible token) minting on Solana is growing as well. In mid-September, the “Degenerate Ape” NFT collection made headlines. Some of the individual NFTs in the collection sold for over $1 million. Moreover, one of the leading crypto exchanges FTX will support Solana-based NFT in its NFT marketplace, as the exchange hinted on Sep. 30.
As Solana made an entrance into the top 10 cryptos with a whopping 10,500% yearly gain, it got increased attention from retail and institutional investors. Moreover, many experts in the finance and the crypto sector commented on the smart contract platform, claiming it is a good long-term investment.
Johnny McCamley, the founder of the investment platform CryptoClear, saw the smart contract blockchain as an “excellent” investment.
Solana is an excellent investment for the long term. […] Solana ensures composability between ecosystem projects by maintaining a single international state as the network scales. Never deal with fragmented Layer 2 systems or sharded chains.
Maria Stankevich, Chief Business Development Officer at crypto exchange EXMO UK, was also optimistic about Solana’s prospects.
Solana claims that its blockchain can support more than 50 000 transactions per sec (TPS) which makes it the fastest blockchain ever. […]Another secret of Solana is a new protocol Proof-of-History, that allows the unprecedented traffic possibility.
commented the CBDO.
Moreover, a veteran investor Raoul Pal, the founder, and CEO of the fintech company Real Vision commented on Solana’s rally. “This is real and this is happening at a speed none of us can get our heads around”, he said in an interview.
It’s kind of like everybody wanted Cardano to happen is actually happening to Solana right now. It doesn’t mean Cardano doesn’t over time, but Solana looks like it’s going to win this cycle. It wasn’t the standout coin that becomes a major.
In addition to everything mentioned above, SOL flashed a bullish formation on the charts, dubbed the bull flag. The latter occurs, when a sharp uptrend is followed by a period of consolidation. The consolidating price action highs and lows constitute two parallel trendlines, i.e. the flag. The preceding uptrend is the flag pole.
The bull flag, as evident from the name itself, is a bullish formation and predicts more gains after the digital asset breaks out above the resistance trendline. SOL already broke out in the Asian-Pacific session Friday and reached $163 in the New York session, complying with the prediction.
Lilit is a Yerevan-based Markets writer, skilled in 3 languages, and interested in writing about the tech world, trading, art, and science. She also has a background in psychology and marketing, which helps deliver the right message to the target audience.