Solana (SOL) Continues Sideways Move As Outflows Record $39 Million

Solana (SOL) has recovered 30% of its price since the Black Monday crash, hovering between the $155-$140 range. Recent reports revealed the Solana-based investment products were among the largest losers last week after registering over $30 million in outflows....

Aug 20, 2024 - 21:05

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Solana (SOL) Continues Sideways Move As Outflows Record $39 Million

Solana (SOL) has recovered 30% of its price since the Black Monday crash, hovering between the $155-$140 range. Recent reports revealed the Solana-based investment products were among the largest losers last week after registering over $30 million in outflows.

The token continued its sideways trajectory despite the negative net flows and memecoin’s trading activity decline over the week. As a result, SOL’s recent performance was praised by some crypto analysts who deem the cryptocurrency a safe bet.

Solana ETPs See Record Outflows

CoinShares’ recent report revealed that last week’s Exchange-Traded Products (ETPs) net flows registered a positive but “low” $30 million. The data showed that crypto-based investment products saw minor inflows in the past 7 days, with mixed flows among the providers.

Per the report, the established ETP issuers continued to lose market share to providers of the newer investment products. The crypto funds’ weekly trading volume also fell to $7.6 billion, dropping nearly 50% from the $19 billion registered the week prior.

Throughout the week, Bitcoin (BTC) saw the largest inflows among the crypto assets, with a $42 million positive net flow. Short-Bitcoin ETFs registered $1 million in outflows on its second consecutive negative week.

Ethereum-based products only registered 10% of the flagship cryptocurrency’s inflows, recording $4.2 million since August 12. The positive $104 million net flows from new providers were overshadowed by Grayscale Ethereum Trust (ETHE)’s $118 million in outflows.

Nonetheless, Solana investment products had the largest outflow by cryptocurrency after Solana ETPs saw $39 million in negative week flows. 21Shares Solana ETP’s -$37 million ranked third as the largest outflow by investment product last week, only behind ETHE and GBTC.

Flows by crypto asset in the last week. Source: CoinShares

SOL Continue Sideways Trajectory

CoinShare’s report highlighted that Solana ETPs’ negative performance occurred alongside the “sharp decline in trading volume of memecoins, on which it heavily relies.”

Data from CoinGecko revealed that Solana-based memecoins saw a 3.7% decline in the last 24 hours, registering a $3.59 billion market cap. Its market activity also displayed a similar 3% decline since Sunday, falling to a daily trading volume of $1.1 billion.

Despite this, the Solana ecosystem has moved sideways over the weekend, hovering between the $243 billion to $245 billion market cap since August 15. SOL’s price also moved between $140 and $155 over the weekend, a range it has maintained since August 12.

Crypto analyst Altcoin Sherpa suggested that the token will see “more chop and consolidation” in the coming weeks. However, he asserted that the $125-$150 price range is a “great place to accumulate SOL.” The analyst also considers the token “is still 1 you can comfortably hold for a while.”

Similarly, Crypto Jelle noted SOL’s recent performance, stating that it is “still in the same sideways range, while the rest of the market made lower lows.” To the analyst, SOL will take off hard “as soon as Bitcoin finds a bid,” and a new all-time high (ATH) is “very much on the menu.”

As of this writing, SOL is trading at $144, a 1.4% drop in the last 24 hours.