Crypto

Grayscale Establishes a SOL-backed Trust, Solana Price Aiming for $300

Solana SOL Crypto

The Grayscale Solana Trust would present high-net-worth and institutional investors indirect exposure to the positive SOL market that has been going on for a year.

Solana (SOL) held onto its intraday gains on November 30 after Grayscale Investments, the largest cryptocurrency fund in the world, revealed that it would add SOL to its product range.

On November 30, 2021, Grayscale (@Grayscale) on Twitter stated, “We’re increasing our products to keep up with the growth of the digital asset class! Through the new Grayscale #Solana Trust, you can gain exposure to $SOL, the @Solana network’s native currency.”

Are you ready for a $300 SOL?

After gaining over 6.50 percent intraday, SOL moved to approximately $217.50. The Solana token’s gains were mostly because of a recovery move that began on November 28 and saw it rebound over 20% after testing a reliable multi-month ascending trendline as support (around $190).

SOL also crossed the 23.6 Fib line ($204) of its Fibonacci retracement graph, formed from the $23.22-swing low to the $260.69-swing high, appreciation to recent buying near the trendline support. As a result, the $260 price level appears to be SOL’s final line of defense against a new high.

“Despite what appears to be weariness, $300-something is still achievable (this season),” said @fomocapdao, an independent market analyst, adding, “It depends on the entire [environment], meaning TVL, NFTs, Tabasco, announcements of announcements.”

“Continued appetite” for Solana Grayscale’s decision to include Solana in its service portfolio was expected to increase SOL’s visibility among high-net-worth and institutional investors.

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This is largely due to Solana’s meteoric rise as a blockchain project in 2021. After offering users one of the cheapest and fastest public ledgers, the layer-one protocol became a competitor to Ethereum, another smart contract platform.

With 1.2 million active users, Solana’s ecosystem attracted over 500 startups across decentralized finance (DeFi), nonfungible tokens (NFT), Web 3.0, and other areas. Serum, a decentralized derivatives exchange supported by Sam Bankman-FTX Fried’s and Alamada Research, is one of them.

As a result, the price of SOL, which functions as a fee and staking token inside the Solana ecosystem, increased by more than 10,700% year over year, reaching a circulating market value of $77.93 billion in November.

Solana is still the fourth-largest blockchain by market capitalization, with Grayscale CEO Michael Sonnenshein stating that investors have a “continuing interest” in the blockchain project.

Coinshares, a London-based asset management firm, recorded net capital inflows of over $250 million into SOL-based exchange-traded products, prompting the remarks (ETP). According to Coinshares’ November 29 report, the Solana ETPs have attracted roughly $42.2 million this month alone.

Despite predictions that SOL will approach $300 shortly, the token still faces downside risks as a result of a few general concerns, such as exorbitant valuations on longer-time frame charts and the probability of network disruptions.

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.