Resilient Solana Recovers Post-Outage, Attracts Institutional Investors Despite Crypto Market Fluctuations
Summary:
Despite a five-hour network outage on February 6, cryptocurrency Solana (SOL) has experienced a price recovery, increasing 1.04% in the last 24 hours. The total crypto market capitalization also rose 0.45% to reach $1.6 trillion. Reports reveal a surge in institutional investor flows into SOL-based investment products, surpassing those of rival cryptocurrencies, Ether and Avalanche. Solana's total value locked (TVL) also increased to $1.65 billion, indicating greater investor activity. Additionally, its lower transaction fees continue to draw in new users.
The cryptocurrency Solana (SOL) has reported a rise in prices, bouncing back from a significant network outage that lasted for five hours on February 6. Despite initial fears of a dramatic fall in its value, SOL has demonstrated an impressive resilience, registering a 1.04% increase in its price in the past 24 hours. Looking deeper into the matter, it remains undecided whether SOL's resilience is in line with the broader reactions of the crypto market or if there are other driving forces behind its price hike.
As of February 7, the majority of leading cryptocurrencies flashed positive growth, nudging the total crypto market capitalization upwards by 0.45%, reaching a total of $1.6 trillion, according to data collected by CoinMarketCap.
Bitcoin (BTC) demonstrated remarkable stability, remaining steady above the $43,000 mark. At the same time, Ether (ETH) reported a growth of 1.25% and is currently being traded at $2,371. Catalysts suspected to bring a bullish drive to the crypto market include the nearing Bitcoin halving event, growing anticipation surrounding the possible approval for spot Ethereum ETFs in May, and the Dencun upgrade on the Ethereum network.
In reassurance news for SOL supporters, CoinShares' reports indicate a surge in institutional investor flows into SOL-based investment products. These have eclipsed similar inflows for competitor layer-1 tokens such as Ether and Avalanche (AVAX). The report indicates SOL-based investment products received $13.4 million last week, surpassing Ethereum and Avalanche, which reported outflows of $6.4 million and $1.3 million respectively.
According to CoinShares' data, a total of $707.8 million from investors was pumped into crypto products last week, shooting total global assets under management up to a lofty $53 billion.
Furthermore, the total value locked (TVL) in Solana, as per data from DefiLlama indicates increased investor activity, showing a rise to $1.65 billion on February 7.
Adding to that, Solana’s decentralized exchange volume still ranks among the highest this week, with the platform's DEX volume standing at $6.25 million over the course of the week, tailing Ethereum's $7.582 billion.
Thanks to its notably lower transaction costs, Solana continues to appeal to new users, especially those targeting new airdrops. According to Solscan, Solana’s transaction fees hover around $0.0001 to $0.0003, a figure substantially lower than those found on Ethereum.
In closing, it is essential to note that trading and investing in cryptocurrencies carry inherent risks. Thorough research should be conducted by individuals before making any related decisions. This article does not contain any form of investment advice or recommendations.
Published At
2/7/2024 10:35:45 PM
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