In late 2023, Solana (SOL) saw a notable rise, peaking at $210 in March 2024. Shortly afterwards, the price fell back to $124 before stabilizing around $143.
According to a recent report from CoinShares, a blockchain analysis platform, institutional investors see this lower price as an attractive entry point.
Solana is popular
CoinShares surveyed 64 institutional investors with approximately $600 billion in combined assets. The results showed that almost 15% of these investors are now invested in Solana, indicating a growing interest in this cryptocurrency.
Solana has become one of the leading alternatives alongside established cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). While Bitcoin is still the undisputed market leader, with more than 25% of institutional investors surveyed investing in it, Ethereum is losing popularity.
Increasing share of digital assets in institutional investor portfolios
Digital assets are taking up an increasing share of institutional investors’ investment portfolios. The CoinShares survey shows that digital assets now make up about 3% of the average portfolio, which is the highest level since the survey began in 2021.
This growth is partly due to the introduction of US Spot Bitcoin exchange-traded funds (ETFs), making investments in digital assets more accessible to institutional investors.
Congestion problems
The Solana network gets a lot of attention, but also suffers from its own success. Hardhat Chad, the anonymous developer of the Ore blockchain project, has an innovative proposal to increase testnet activity.
He suggests that the Solana Foundation should award tokens as rewards to encourage participation in testing activities. These testing activities are crucial for trying out new features and identifying potential issues before they reach the production environment.
This proposal comes at a time when Solana faces significant congestion issues, with up to 75% of transactions potentially failing. Chad argues that reward incentives are needed to build a more robust and efficient network.
Trade €10,000 for free and get a 10 euro bonus
Do you want to enter the crypto world and perhaps buy Solana or another crypto? Then grab your chance now with this exclusive offer! Thanks to a special deal between Newsbit and Bitvavo, one of the most accessible and user-friendly crypto exchanges in Europe, our readers receive an exclusive offer.
Create an account with Bitvavo via the button below and receive a welcome gift of 10 euros completely free. And that’s not all – you also don’t pay trading fees on your first 10,000 euros in transactions. Register now!
Source: https://newsbit.nl/solana-trekt-grote-belangstelling-van-institutionele-beleggers/
