Institutional investors have continued to bet on the smart contract platform Solana (SUN) through investment products focused on cryptocurrency. Your bets arrive weeks after the FTX collapse and after the price of SOL plummeted.
According to the latest digital assets fund flows report On CoinShares, investment products focusing on Solana (SOL) saw inflows of $400,000 last week, up from $200,000 the week before, marking its third week of inflows after the FTX crash.
FTX CEO Sam Bankman-Fried who was arrested earlier this week in the Bahamas, is a well-known supporter of SOL and has invested in various projects in the cryptocurrency ecosystem. His involvement in these projects has affected investor confidence in them after the collapse of FTX. SOL, as of this writing, is trading near the $14 mark after hitting a low of $11 last month.
Data from online research firm Santiment suggests that the fear surrounding Solana could trigger a rally in its price. This could happen if short sellers start to exit their positions, triggering a short squeeze.
A short squeeze occurs when the price of an asset rises rapidly and unexpectedly. As short sellers close out their positions, the influx of buy orders may further increase the price of the asset.
In particular, former Goldman Sachs executive Raoul Pal explained why he thinks this could be a good time to buy SOL, the native token of the Solana blockchain, despite all the pessimism surrounding the Solana ecosystem. in the aftermath of the FTX collapse.
During an “Ask Me Anything” session aired on the “Real Vision Crypto” YouTube channel, Pal had this to say about Solana, after detailing that he likes Solana and the situation she is currently in, noting that she is “doing something very clever.”
Solana reminds me of Ethereum in 2018, when it was down 97% and no one cared. And that was a great fucking opportunity.
The CoinShares report also details that cryptocurrency investment products saw inflows of less than $8.8 million over the past week, while trading volumes hit a new 2-year low. Bitcoin investment products posted $17.1 million inflows, while most other products posted outflows. Solana (SOL) was the only major altcoin to see entries.
