Crypto
Michael Saylor Hails Longing SOL As Solana Crosses 1B Transactions
Saylor is backing SOL as Solana activity surges, but declining users and weak institutional flows could complicate its path toward $100.
15h ago 4,280
BLOCKINSIDERLoadingSaylor is backing SOL as Solana activity surges, but declining users and weak institutional flows could complicate its path toward $100.
Strategy’s Founder, Michael Saylor, who is responsible for the biggest institutional BTC treasury, has rarely spoken in favor of other crypto tokens. This makes his attention to Solana rather interesting.
While the subtle appreciation came in regards to one bullish aspect, the BTS of the network portrays a different face of SOL holders.
Michael Saylor, who otherwise rarely speaks for altcoins, extended his support for Solana (SOL) earlier today, stating that longing the altcoin “isn’t a bad strategy.” These words of appreciation were followed by,
“Fundamentals are picking up nicely, just a matter of time until price follows through”
The fundamentals that Saylor was speaking of were the fact that Solana crossed the 1 billion weekly transaction mark. This was the second consecutive week that transaction activity achieved this milestone, even marking a new ATH of 1.11 billion transactions.
On paper, this looks like a bullish sign for Solana, but the on-chain data highlights that the network is still facing some trouble.
While Solana is gaining in activity, it’s yet to make any waves on the institutional front. Spot SOL ETF flows still remain bleak, with weekly flows sitting under $20 million since mid-May. The last time SOL noted decent inflows was back in the week ending May 15, when $58 million in inflows were registered.
The institutions and other retail investors seem to be taking a backseat for now since the market is extremely bearish. Altcoins are barely cracking it, with most of the ETF capital remaining concentrated in BTC.
In the last 30 days, the likes of BNB, DOT, and AVAX have seen no inflows whatsoever. DOGE, LTC, LINK, and HBAR noted less than $5 million in inflows while HYPE registered $25 million in outflows.
BTC and ETH, on the other hand, recorded $756 million and $467 million in inflows, respectively, with the next closest inflows being $30.8 million coming in for XRP. Thus, institutional activity will have to pick up for any altcoin to see growth.
On the adoption front, too, Solana is suffering as unique addresses have noted a 31% drop in the past month. Active addresses, which measure the addresses that are conducting a transaction for the first time, have declined from 6.7 million to 4.6 million.
Unique addresses are a crucial sign of a network’s health, as they show that a token or chain is picking up traction in the market and expanding its reach. When the same declines while transaction activity grows, it signals that the network is becoming concentrated.
Solana’s price, trading at $76 at the time of writing, is picking up momentum after breaching the month-long downtrend. The altcoin broke above the 38.2% Fib line at $74 in the process after falling from $83 in July.
The drop also led to SOL falling through the uptrend support line that had been in place since the beginning of June.
If the altcoin can reclaim this support level, it would confirm the uptrend again; however, this support lies at $83 at the moment, which means SOL needs to recover its past month's losses first.
This would place SOL above the 61.8% Fib line, which is also known as a bull market support floor. Reclaiming it would reignite the momentum to push Solana’s price back above $90 and towards $100.
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