Institutional investors have kept on betting on the smart contract platform Solana ($SOL) through investment products focusing on the cryptocurrency. Their bets come weeks after the collapse of FTX and after SOL’s price crashed.
According to CoinShares’ latest Digital Asset Fund Flows report, investment products focusing on Solana saw inflows of $400,000 last week, up from $200,000 the week before, marking their third week of inflows after the collapse of FTX.
FTX CEO Sam Bankman-Fried, who was arrested earlier this week in the Bahamas, is a well-known $SOL supporter and has invested in various projects on the cryptocurrency’s ecosystem. His involvement in these projects has affected investors’ confidence in them in the wake of FTX’s collapse. $SOL is, at the time of writing, trading close to the $14 mark after hitting an $11 low last month.
Data from on-chain analytics firm Santiment suggests that the fear surrounding Solana could lead to a rebound 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 their positions, the influx of buy orders can further drive up the price of the asset.
Notably, former Goldman Sachs executive Raoul Pal has explained why he believes this could be a great time to buy $SOL, the native token of the Solana blockchain, despite all the doom and gloom surrounding the Solana ecosystem in the wake of the collapse of FTX.
During an “Ask Me Anything” session streamed on the YouTube channel “Real Vision Crypto”, Pal had this to say about Solana, after detailing he likes Solana and the situation it’s currently in, and noting it’s “doing something very clever.”
Solana reminds me of Ethereum back in 2018 when it was down 97% and nobody cared. And that was a great bloody opportunity.
CoinShares’ report also details that cryptocurrency investment products saw minor inflows of $8.8 million over the past week, while trading volumes reached a new 2-year low. Bitcoin investment products saw inflows of $17.1 million, while most other products saw outflows. Solana ($SOL) was the only major altcoin seeing inflows.
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