Solana (SOL) Price Surges by 40% This Week: Eased FTX Sell-off Concerns and Growing Bitcoin-ETF Enthusiasm
Date: 2023-11-11 Author: Dima Zakharov Categories: BUSINESS
Solana (SOL) Price Surge Due to Decreased FTX Sell-Off Concerns and Bitcoin-ETF Enthusiasm
Throughout this week, the price of the cryptocurrency Solana (SOL) has experienced a significant surge, growing by 40%. This impressive increase can be attributed to several key factors, including the alleviation of concerns regarding a potential FTX sell-off and the growing interest in Bitcoin-ETF. Technical data for the SOL/USD pair also confirms the potential for further growth, positioning Solana as one of the most attractive assets in the current cryptocurrency market.
Institutional Flows and Court Approval in Delaware Bankruptcy
The upward trend of Solana aligns with a period of daily sales of SOL tokens as part of FTX's bankruptcy assets, capturing the interest of investors. Despite concerns about the scale of these sales, a Delaware bankruptcy court approved the sale of 55.75 million SOL tokens in September 2023. This decision mitigated initial concerns as some tokens were transferred or locked, and the weekly sales limit of $100 million USD reduced the impact of this process on the market. Institutional flows, measured by funds focused on Solana, also confirmed a confident influx of funds, totaling $10.8 million for the past week.
Impact of Bitcoin-ETF Euphoria on Solana's Growth
The overall surge in cryptocurrency prices, driven by the excitement surrounding Bitcoin-ETF and the substantial rise of Bitcoin to $38,000, has also influenced Solana's successful performance. It is noteworthy that Solana has demonstrated more outstanding results over the past 30 days compared to other cryptocurrencies.
Growth in Open Interest and Funding Rates in the Context of Solana Futures
Against the backdrop of Solana's price growth, open interest in futures has reached a significant level of approximately $772 million, marking the highest point since November 2021 when SOL set a record high of $260. The increase in open interest indicates growing interest and potentially high liquidity in the Solana market. An essential factor confirming bullish sentiment in the market is the rise in funding rates. Positive funding rates reached this week indicate a prevalence of long positions, emphasizing a strong upward trend and investor confidence in Solana.
