Solana (SOL) has been on the tip of many crypto enthusiastsโ tongues lately and with good reason. The vibrant ecosystem, strong partnerships, and a skyrocketing SOL price have given investors plenty to mull over. Here are four (new) reasons why you should lend Solana your attention.
#1 Solana And The US Regulatory Landscape
Solanaโs prospects in the US seem to be intertwined with unfolding regulatory decisions. Vibhu Norby, founder of Drip Labs, today shared notable and positive insights from a recent Crypto Policy Bootcamp, tweeting, โTakeaways from Crypto Policy Bootcamp in D.C. โฆ Most agreed Gensler is an outlier, lots of folks in Congress support crypto and clear rules, and everything is going to be fine. Just slow.โ
This suggests a broader acceptance and understanding of crypto within the legislative chambers. One of the key points Norby highlighted was the collaborative efforts between the Solana Foundation and Polygon Labs. He shared, โSolana Foundation and Polygon Labs are working together (!) to secure better policy.โ
Norby also touched upon the ongoing lawsuit between the SEC and Coinbase, asserting, โSEC vs. Coinbase is the most important case right now in the US. A few opinions from smart lawyers think Coinbase probably wins against the SEC before Q2 next year. But nobody knows of course.โ
The ramifications of this case could have broad implications, especially for tokens like Solana (SOL) that have been pulled into regulatory scrutiny. Given the SECโs allegations against Binance and Coinbase for selling unregistered securities, including SOL, a favorable outcome for Coinbase might positively impact Solanaโs standing in the US and ultimately its price trajectory.
#2 Solanaโs Potential Blue-Chip Evolution
The constant comparison between Ethereum and Solana has given rise to debates in the crypto sphere. However, the increasing attention Solana has garnered, especially from venture capitalists (VCs), has lent credence to the belief that it might soon join the ranks of blue-chip assets.
Raj Gokal, co-founder of Solana, recently hinted at a shifting attitude amongst VCs towards Solana. In response, Chris Burniske, analyst and partner at Placeholder VC, predicted a change in perception among VCs โ moving from avoidance to eagerness in investing in Solana projects.
Burniske further confirmed a userโs query regarding Solanaโs potential to attain Ethereum-like prominence, suggesting that in places like India, Solana already enjoys a reputation similar to Ethereumโs.
He stated:
Very quickly this will go from, โWe donโt invest in Solana projects,โ to โWeโre underexposed to Solana.โ And so the bidding wars will beginโฆ the quality entrepreneurs of the ecosystem deserve it.โ [โฆ] And would add that in some countries, like India, Solana is already as widely known and beloved as Ethereum.
#3 Rising Institutional Interest
Recently, the institutional tide appears to be turning in favor of Solana. Sasha Fleyshman, a notable portfolio manager at Arca, expressed his initial hesitation towards Solana in a tweet, stating, โFor what itโs worth Raj Gokal, Chris Burniske, I havenโt really seen too much in the pipeline to even consider for investment from the Solana side of the ecosystem.โ
This sentiment, once widely echoed within the institutional realm, seems to be undergoing a change. โI think party lines were drawn on both sides [Ethereum and Solana]- as for us, we are open to taking looks, but unsure how to get that started,โ Fleyshman revealed.
A deep dive into recent data also shows Solanaโs growing allure among institutional investors. Solana (SOL) has seen the strongest influx of capital among all crypto assets in recent weeks. Per CoinSharesโ weekly digital asset investment products report, SOL has been the darling of institutional investors.
The latest CoinShares report indicated a significant surge in capital inflows towards Solana. In just one week, Solana attracted a substantial $15.5 million, starkly juxtaposed against Ethereumโs outflows, which stood at $7.4 million for the same period.
Such a bullish institutional endorsement is further amplified when considering the year-long metrics. Solanaโs Assets under Management (AuM) for the year have burgeoned to a remarkable $74 million, marking a surge of 47%. In comparison, Ethereumโs outflows have amounted to $119 million year-to-date.
#4 Bullish Chart Setup
The Solana (SOL) chart is extremely bullish and one of the strongest in the entire altcoin market right now, with a performance of +240% year-to-date. At press time, SOL was trading at $32.14 after establishing a new high for the year yesterday at $33.87 yesterday.
The SOL price has broken out of the triangle formation and is in the process of establishing a new trading range above $30.61. If SOL defends this level in the coming days and weeks, a rise to the next key resistance area at $47.21 could be on the cards.
Featured image from The Independent, chart from TradingView.com
