Why Solana (SOL) Continues to Thrive Amidst Altcoin Dip
You’ve probably heard about the recent dip in interest in altcoins, with many investors withdrawing their funds. However, there’s one altcoin that’s been capturing the attention of investors: Solana (SOL). According to a report by CoinShares, institutional investors have been showing increasing interest in SOL over the past nine weeks, despite the overall trend of investors pulling out of crypto investment products.
In fact, SOL has earned the title of “the most loved altcoin amongst investors at present,” with approximately $700,000 invested in it through crypto investment providers in the previous week alone. Cumulative year-to-date inflows focusing on SOL have reached $26 million, while other altcoins like Polygon and Ethereum saw investors pulling out millions of dollars.
Even Bitcoin, the leading digital asset, managed to secure an influx of $3.8 million from investors during the same period.
Solana, which serves as the native asset for transactions on the Solana blockchain, has gained traction recently. Developers are utilizing the platform to create decentralized applications ranging from games to decentralized finance lending protocols. This has attracted attention from industry experts like Chris Burniske, who predicts that Solana has the potential to outshine Ethereum in the next market expansion.
Burniske highlighted the SOL/ETH pair, suggesting that Solana may reach 0.02 ETH in the next impulse. He made it clear that his prediction is not meant to criticize Ethereum, but rather to emphasize the positive aspects of both assets and networks. He noted that holding and supporting both assets can be beneficial due to their different risks and visions.
Despite experiencing a significant decline from its all-time high, Burniske believes that Solana is showing signs of resurgence. Its lower transaction fees and higher throughput make it an attractive option for investors, leading to a new product cycle “coming to life from the ashes.”
In conclusion, while altcoins may be experiencing a dip, Solana stands out as an altcoin that continues to capture investors’ attention. Its potential for growth, lower transaction fees, and higher throughput make it a promising investment option. So, keep an eye on Solana as it may just outshine Ethereum in the next market expansion.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.