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Solana Bucks Market Trends with Inflows Surge — Experts Believe in a Bull Run

Last Updated September 6, 2023 9:04 AM
Omar Elorfaly
Last Updated September 6, 2023 9:04 AM

Key Takeaways

  • Solana sees $700,000 inflows as the rest of the market slumps.
  • SOL is held back by the SEC’s ‘security’ sanctions.
  • The token’s issuer is working on expanding its capabilities for payment.

The crypto market has been turbulent over the last period as key-indicating tokens such as Bitcoin and Ethereum witnessed several drops in the past few weeks. Moreover, altcoins such as BNB, XRP, and BUSD have faced sharp declines in value during the recent bearish cycle.

However, an altcoin, SOL, has been going against the odds. Data  shows that SOL, unlike most altcoins, has been seeing a steady flow of investments and interest from investors.

Coinshares saw almost $700,000 in inflows while Ethereum saw a sharp drop of $3.2M.

How is Solana managing to thrive against the tides?

Solana Thrives

According to Coinshares , “altcoins saw outflows, most notable being Polygon and Ethereum, which saw US$8.6m and US$3.2m respectively. While Solana saw inflows for the 9th consecutive week, totaling US$0.7m, the YTD inflows of US$26m suggest it is the most loved altcoin amongst investors at present.”

The altcoin’s success may be attributed to the efforts its issuer Solana Labs has been putting forth toward bringing the token to the mainstream market.

Recently, Solana Labs partnered with Shopify and Circle, the issuer of USDC, to bring stablecoin payments to individual vendors.

On top of that, many tokens are now calling themselves “Solana killers”. As ominous as it sounds, it may play in the favor of Solana. The same trend took place with Ethereum, one of the market’s leading altcoins.

Youtuber Coin Bureau reports  “Solana could have serious potential during the next crypto bull market. This is simply because most of the new layer-1s have branded themselves as Solana killers. Consider that the cryptos that did the best during the previous cycle were those that branded themselves Ethereum killers.

In the end, both ETH and these Ethereum killers saw massive gains. It’s possible that we’ll see a similar scenario play with SOL and all the Solana killers during the next cycle. However, this assumes that Ethereum hasn’t already won the layer-1 competition, which, you’ll recall, seems to be the case.”

Why Hasn’t Solana Taken the Market Lead Yet?

In lawsuits filed against major crypto institutions, such as Coinbase and Binance, the US Securities and Exchange Commission (SEC) cited the exchanges traded illegally in “unregistered securities” including Solana’s native token SOL.

FTX reportedly  holds over seven million SOL tokens in cold wallets. The collapsed institution is expected to liquidate its digital assets as part of its settlement in the upcoming months.

With fears of a major market dump, investors are likely wary of a sudden SOL price plummet, hampering the altcoin’s potential for success. 

 

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