Solana Recovers 30% of Price After Black Monday Crash
Since the Black Monday crash, Solana (SOL) has made strides in recovering its price, gaining back 30% and stabilizing in the $155-$140 range. Despite recent reports of significant outflows from Solana-based investment products, the token has maintained a sideways trajectory amidst declining memecoin trading activity over the past week. This performance has garnered praise from some crypto analysts, who view SOL as a reliable investment choice.
Solana ETPs Experience Record Outflows
CoinShares’ latest report highlighted a notable $30 million in outflows from Solana Exchange-Traded Products (ETPs) in the previous week. While overall ETP net flows were positive but described as “low,” crypto-based investment products saw modest inflows across various providers. Established ETP issuers continued to lose market share to newer providers, with total weekly trading volume dropping by nearly 50% to $7.6 billion from the previous week’s $19 billion.
- Bitcoin (BTC) led in inflows among crypto assets, with a positive net flow of $42 million.
- Ethereum-based products accounted for only 10% of Bitcoin’s inflows, bringing in $4.2 million since August 12.
- New providers saw $104 million in positive net flows, overshadowed by Grayscale Ethereum Trust (ETHE) with $118 million outflows.
- Solana investment products experienced the most significant outflows, with Solana ETPs witnessing $39 million in negative flows.
SOL Maintains Sideways Movement
According to the report, Solana ETPs’ poor performance coincided with a sharp decline in trading volume for memecoins, which Solana heavily relies on. Data from CoinGecko revealed a 3.7% drop in Solana-based memecoins’ value in the past day, with a market cap of $3.59 billion. Market activity also decreased by 3%, reaching a daily trading volume of $1.1 billion.
- Despite these challenges, the Solana ecosystem remained stable over the weekend, with a market cap fluctuating between $243 billion and $245 billion since August 15.
- SOL’s price also maintained a range of $140-$155 throughout the weekend, consistent since August 12.
- Analytical insights from Altcoin Sherpa suggest more consolidation for SOL in the coming weeks, highlighting the $125-$150 price range as a favorable accumulation zone.
- Crypto analyst Crypto Jelle noted SOL’s sideways movement, predicting a bullish trend once Bitcoin’s value increases, potentially leading to a new all-time high for SOL.
As of the latest update, SOL is trading at $144, reflecting a 1.4% decline in the past 24 hours.
Hot Take: Solana’s Recovery Amidst Market Challenges
Despite facing significant outflows in Solana ETPs and a decline in memecoin trading activity, SOL has showcased resilience by recovering 30% of its price following the Black Monday crash. The cryptocurrency’s ability to maintain a sideways trajectory amidst market fluctuations has garnered attention from analysts, suggesting potential growth opportunities in the near future.
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