Still Not Bullish On Solana? 4 New Reasons Why You Should Be
October 26 2023 - 7:00AM
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Solana (SOL) has been on the tip of many crypto enthusiasts’
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 Solana’s 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, “Takeaways from Crypto Policy Bootcamp
in D.C. … 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.” 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, “Solana
Foundation and Polygon Labs are working together (!) to secure
better policy.” Related Reading: Solana Price Surge: Analysts
Predict Target Zones Of $69 – $123 In Coming Months Norby also
touched upon the ongoing lawsuit between the SEC and Coinbase,
asserting, “SEC 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.” The ramifications of this case could have broad
implications, especially for tokens like Solana (SOL) that have
been pulled into regulatory scrutiny. Given the SEC’s allegations
against Binance and Coinbase for selling unregistered securities,
including SOL, a favorable outcome for Coinbase might positively
impact Solana’s standing in the US and ultimately its price
trajectory. #2 Solana’s 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 – moving from avoidance to eagerness
in investing in Solana projects. Burniske further confirmed a
user’s query regarding Solana’s potential to attain Ethereum-like
prominence, suggesting that in places like India, Solana already
enjoys a reputation similar to Ethereum’s. He stated: Very quickly
this will go from, ‘We don’t invest in Solana projects,’ to ‘We’re
underexposed to Solana.’ And so the bidding wars will begin… the
quality entrepreneurs of the ecosystem deserve it.” […] 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, “For what it’s worth Raj Gokal, Chris Burniske, I haven’t
really seen too much in the pipeline to even consider for
investment from the Solana side of the ecosystem.” This sentiment,
once widely echoed within the institutional realm, seems to be
undergoing a change. “I 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,” Fleyshman revealed. Related
Reading: Solana Epic Bounceback To Pre-FTX Heights: Brace Yourself
For What’s Next A deep dive into recent data also shows Solana’s
growing allure among institutional investors. Solana (SOL) has seen
the strongest influx of capital among all crypto assets in recent
weeks. Per CoinShares’ 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 Ethereum’s
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. Solana’s Assets under Management
(AuM) for the year have burgeoned to a remarkable $74 million,
marking a surge of 47%. In comparison, Ethereum’s 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
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