A leading blockchain known for its high speed and low fees, Solana, has experienced massive growth in recent months. The network has seen a huge influx of stablecoins and increasing interest from major financial institutions. This surge in activity points to Solana’s rising status in the crypto world.
Since December 2023, a whopping $1.5 billion worth of stablecoins has flowed into Solana, per DeFiLlama data. At the same time, the price of SOL, the native token of Solana, has skyrocketed by an impressive 260%. Experts believe the stablecoin inflows have played a big role in driving up the value of SOL.
The total value of stablecoins on Solana now stands at $3.04 billion. Having such a large number of stable assets on the network makes it much easier to trade SOL. This leads to more people buying and selling, which then pushes the price up further as demand grows.
Many in the crypto community are very positive about Solana’s future. They expect the trend of stablecoins moving to Solana to continue. Some analysts predict that if the total stablecoin market returns to its all-time high of $188 billion, the price of SOL could surge to at least $350. That’s a further 102.5% increase from its current price of around $173.
Whales Make a Splash in Solana
Big financial players are also starting to show serious interest in Solana. CoinShares reported weekly inflows of $5.8 million into Solana-based investment products.
This shows that large institutions are gaining confidence in the long-term potential of Solana and are putting their money into it.
Looking at the big picture, Solana has key advantages that make it attractive for major adoption. It’s one of the most scalable blockchains out there, able to handle a huge number of transactions. Solana can process up to 65,000 transactions per second, at an average cost of just $0.0025 per transaction.
PayPal USD Launches on Solana
This extremely high speed and low cost make Solana a great fit for big payment companies. In recent weeks, PayPal integrated its stablecoin on Solana, and Visa launched USD Coin support on the network last year.
Industry experts believe Solana is set to gain many more partnerships with financial institutions in the coming years.
Some are speculating that with Solana’s growing prominence, it could be the next cryptocurrency after Bitcoin and Ethereum to have an exchange-traded fund (ETF) approved in the US. Asset manager Franklin Templeton praised Solana’s unique approach earlier this year, hinting at institutional demand for Solana investment products.
Solana is a blockchain to watch, as stablecoin inflows surge and major players in traditional finance take notice. With its unmatched speed, low fees, and partnerships with the likes of PayPal and Visa, Solana looks primed to become a leading platform for the future of payments and institutional crypto adoption.
SOL Holds Its Ground
On the technical analysis front, SOL has maintained a resilient front, thwarting a push by bears below the critical $162–$160 support zone.
Interestingly, this price action coincides with a bullish trendline spanning the May bottom. Moving forward, we can expect SOL to maintain this renewed bullish push back to the $182 level, followed by a possible push for the $190 top.
On the flip side, any bearish move from this level will likely be reversed by the trendline around the $165 mark.
SOL Statistics Data
SOL Current Price: $173
Market Cap: $79.8B
SOL Circulating Supply: 459.9M
SOL Total Supply: 577.5M
Market Ranking: #5
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