Institutional Investors Prefer Solana
In Uptober, the crypto market saw a 17% growth. Both retail and institutional trading became more active as expected.
This led to a 44.3% increase in daily trading volume for crypto funds compared to the previous month.
During the same period, the total funds managed increased by 6.7% to reach $31,7 billion.
Bitcoin attracted the most funds, holding 73.3% of the total or $23,2 billion.
Ethereum is the second most popular choice for investments with $6,4 billion. However, it saw a decrease in funds and a drop in its share from 22.6% to 20.1% compared to September.
In contrast, Solana experienced a significant 74.1% increase in investments, reaching $140 million.
Interest in Solana was boosted by notable collaborations. For instance, Shopify, a major e-commerce company, added Solana Pay as a payment option and VISA started using the Solana blockchain network for faster and cheaper interbank payments.
Solana’s appeal to investors isn’t just about its growth potential but also its historical low point. In 2022, the crypto’s value plummeted by 94% to just $10 per coin, largely due to collaborative projects with FTX.
FTX now holds nearly $2 billion worth of SOL in its accounts. The Judicial Commission has recently given approval to Galaxy Digital, a trusted company, to begin selling off these assets. Galaxy assures that they will limit monthly sales to $100 million to minimize any negative impact on the token’s price.
