Institutional traders have stored on betting on the sensible contract platform Solana ($SOL) by way of funding merchandise specializing in the cryptocurrency. Their bets come weeks after the collapse of FTX and after SOL’s worth crashed.
In line with CoinShares’ newest Digital Asset Fund Flows report, funding merchandise specializing in Solana noticed inflows of $400,000 final week, up from $200,000 the week earlier than, marking their third week of inflows after the collapse of FTX.
FTX CEO Sam Bankman-Fried, who was arrested earlier this week within the Bahamas, is a widely known $SOL supporter and has invested in varied initiatives on the cryptocurrency’s ecosystem. His involvement in these initiatives has affected traders’ confidence in them within the wake of FTX’s collapse. $SOL is, on the time of writing, buying and selling near the $14 mark after hitting an $11 low final month.
Information from on-chain analytics agency Santiment means that the worry surrounding Solana may result in a rebound in its worth. This might occur if quick sellers begin to exit their positions, triggering a brief squeeze.
A brief squeeze happens when the value of an asset rises quickly and unexpectedly. As quick sellers shut their positions, the inflow of purchase orders can additional drive up the value of the asset.
Notably, former Goldman Sachs government Raoul Pal has defined why he believes this might be a good time to purchase $SOL, the native token of the Solana blockchain, regardless of all of the doom and gloom surrounding the Solana ecosystem within the wake of the collapse of FTX.
Throughout an “Ask Me Something” session streamed on the YouTube channel “Actual Imaginative and prescient Crypto”, Pal had this to say about Solana, after detailing he likes Solana and the state of affairs it’s presently in, and noting it’s “doing one thing very intelligent.”
Solana jogs my memory of Ethereum again in 2018 when it was down 97% and no person cared. And that was a fantastic bloody alternative.
CoinShares’ report additionally particulars that cryptocurrency funding merchandise noticed minor inflows of $8.8 million over the previous week, whereas buying and selling volumes reached a brand new 2-year low. Bitcoin funding merchandise noticed inflows of $17.1 million, whereas most different merchandise noticed outflows. Solana ($SOL) was the one main altcoin seeing inflows.
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