Solana (SOL) Jumps 102% from its Low... Institutions Quietly Sweeping Up

▲ Solana (SOL)

Solana (SOL) has broken through a key resistance level, driven by an influx of exchange-traded fund (ETF) capital and an expansion in staking volume. Coupled with the overall rebound in the virtual asset market, it has surged 102% from its year-to-date low, fueling expectations for further gains.

According to U.S. investment media outlet Benzinga on September 28 (local time), Solana showed strong upward momentum based on spot ETF inflows and increased staking demand. Solana spot ETF products saw capital inflows for six consecutive days, recording a monthly net inflow of $264 million. The cumulative inflow into Solana spot ETFs, which have maintained net inflows for three consecutive months, has exceeded $1.61 billion, with total assets under management reaching $1.96 billion. Notably, Bitwise's BSOL ETF is driving growth, managing $1.36 billion in assets.

Network staking metrics also showed sharp improvement. Solana's staking ratio surged to approximately 70%, indicating that the majority of investors have entered into long-term holdings. Stakers are earning an annual yield of around 5.04%. The staking market capitalization has rapidly increased from $42 billion on September 16 to $54 billion recently.

On-chain ecosystem metrics also continued their robust expansion. The market capitalization of stablecoins within the Solana ecosystem increased to $16.7 billion, and the volume of Real World Assets (RWA) reached $2.45 billion. With Bitcoin (BTC) rebounding from $57,000 in July to the $84,000 mark and the total virtual asset market capitalization exceeding $2.8 trillion, Solana is evaluated to have solidified its position as a major Layer 1 network.

A bullish trend was also confirmed in terms of chart analysis. A classic bull flag pattern, consisting of a flagpole and a downward channel, formed on the daily chart. Breaking above the key resistance level of $110, recorded on August 28, further strengthened the upward momentum. Experts predict that the completion of the bull flag pattern could lead to a continuation of a strong uptrend.

Institutional investors' ETF buying spree and the increase in staked, locked-up assets are putting pressure on the circulating supply. Market attention is focused on whether Solana, having turned the $110 resistance into support, can continue its rally to break its yearly high, driven by additional liquidity inflows.

[Article Key Summary]

-Solana (SOL) surged 102% from its year-to-date low, breaking above the key resistance level of $110.

-Cumulative inflows into Solana spot ETFs exceeded $1.61 billion, and staking volume increased to $54 billion.

-A bull flag pattern formed on the daily chart, raising expectations for the continuation of an upward trend.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*