Solana (SOL), nicknamed the ETH killer and an institutional investor favorite asset is known for making a significant rebound in the crypto market. Like other cryptocurrencies, Solana recorded outflows last week due to geopolitical tensions as investors withdrew funds from risky assets.
Solana trades at $144, a 5.2% increase in the last 24 hours lowering weekly losses to 4%. These gains of SOL have outpaced several top coins that also picked up gains in the market. Bitcoin is up 1.16% while Ethereum posted slight 0.5% gains.
BNB increased by 1.91% while Dogecoin (DOGE) and Avalanche (AVAX) notched 2.17% and 1.50% respectively.
Why The Trend?
Recently, the rise of SOL usually outpaces the market, a factor that has gleaned investors to the r asset. Last year the asset soared over 900% on the back of institutional investment in its products. Institutional investors are a reason why Solana outpaces several assets.
Solana’s investment products recorded consecutive inflows last year while other assets excluding Bitcoin posted outflows. This earned it the institutional investor favorite. The asset is also up because of robust network activity across its ecosystem.
Despite previous network issues, Solana continued to attract developers and users to the blockchain as decentralized finance (DeFi) applications ramped up. SOL resilience is also pushed by its community tipping it above other smart contract networks.
Solana Memecoins Adds to the Frenzy
In Q1 2024, Solana memecoins soared in value sparking community debates as inflows outpace rivals. Solana memecoins market capitalization stands at $6.5 billion, a 14% increase at press time.
Assets like Dogwifhat and BOME have soared by 17% and 10% respectively. Solana memecoins have a gained back form on the back of Bitcoin halving inflow. With the rise in the wider market, memecoins gain investor sentiment leading to massive volatility.
Solana memecoin affects the ecosystem trading with the direction of the asset on most occasions. Last week, memecoins saw liquidations along with crypto assets.
Also Read: Crypto Assets Recover Hours To Bitcoin Halving
This news is republished from another source.
