This week’s 40% gain in Solana’s price has been a result of decreasing FTX-dump concerns and more talk about Bitcoin ETFs; SOL/USD functionings point to further gains. This week has seen a 40% increase in the cost of SOL indicators down $59, setting a new high of about $58 for 2023. Since January 2023, that is their greatest weekly performance. Gains have come from a variety of sources, including an increase in risk-taking generally and an overall advance in the cryptocurrency market driven by the excitement around the Bitcoin ETF.
Fears Of An FTX Dump Don’t Faze Solana Bulls
The increase in Solana’s value corresponds with the past two weeks’ daily sales of 25K–75K SOL tokens by the bankruptcy estate of FTX. In September 2023, the issuance of 55.75M tokens of SOL was authorized by the Delaware Bankruptcy Court. Investor excitement has replaced early concerns owing to the small effect of these transactions and a weekly selling cap of $100M, which are caused by certain tokens becoming either vested or locked. For example, Solana-focused resources, which is an indicator used to measure corporate flows within the SOL market, had $10.80M in inflows during the week that ended on November 3.
One of the main causes of the recent surge in crypto prices, which was sparked by Bitcoin’s ascent above $38,000, is the excitement around the Bitcoin ETF. But over the last 30 days, Solana has performed the best. On November 11, Solana’s contracts open interest hit a high point of over $772 million, the largest since 2021 November, after SOL’s price hit its all-time high of $260. Elevated levels of open interest suggest more attention and maybe increased liquidity inside the market.