The price of the popular smart contract platform Solana ($SOL) has risen over 230% so far this year, taking advantage of a wider cryptocurrency market recovery, but significantly outperforming other major cryptocurrencies as investors pour funds into the cryptocurrency.
Solana’s price was negatively impacted at the end of last year with the collapse of FTX, as the collapsed exchange’s former CEO Bankman-Fried was a well-known Solana supporter who had invested in various projects within the cryptocurrency’s ecosystem.
His involvement in these projects has affected investors’ confidence in them in the wake of FTX’s collapse, to the point SOL traded as low as $11 before it started recovering. Its price performance has since also been drawing in institutional investors betting on it.
According to CoinShares’ latest Digital Asset Fund Flows report, last week Solana saw a further $15.5 million of inflows, bringing its year-to-date inflows to $74 million, which represent 47% of their total assets under management.
The rise in inflows came during a week in which total inflows to cryptocurrency investment products reached $65.6 million, with Bitcoin-focused investment products bringing in $55.3 million and Solana-focused products bringing in the next biggest slice.
Products focusing on Ethereum ($ETH) saw $7.4 million in outflows, while investment products focusing on multiple digital assets saw $600,000 in outflows.
As CryptoGlobe reported, a crypto analyst known by the pseudonym Bluntz has indicated that Solana is on the cusp of a significant breakout, saying that its recent price activity suggests it’s likely to outperform BTC in the near future.
He also mentioned that a year-long accumulation phase for SOL, in relation to both the US dollar and Bitcoin, seems to be drawing to a close. Bluntz asserts that once SOL crosses the $32 threshold, a major upward shift will occur, describing the event as when “the floodgates get unleashed.”
Solana is at the time of writing trading at $32.7 after moving up nearly 4% over the last 24-hour period, and over 39% over the past week.
Featured image via Unsplash.
