Solana Garners Significant Interest from Institutional Investors

At the end of 2023, Solana (SOL) experienced a notable surge, reaching a peak of $210 in March 2024. Shortly thereafter, the price fell back to $124, before stabilizing around $143.

According to a recent report by blockchain analytics platform CoinShares, institutional investors consider the lower price an attractive entry point.

The Rising Popularity of Solana CoinShares surveyed 64 institutional investors, with total assets of about $600 billion. The results showed that nearly 15% of these investors are now invested in Solana, indicating a growing interest in this cryptocurrency.

Solana has become one of the leading alternatives to mature cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). While Bitcoin remains the undisputed market leader, with over 25% of surveyed institutional investors invested in it, Ethereum is losing popularity.

Increasing Share of Digital Assets in Institutional Portfolios The share of digital assets in institutional investors’ portfolios is increasing. The CoinShares survey revealed that digital assets currently account for about 3% of the average portfolio, the highest level since the survey began in 2021.

Part of this growth is due to the launch of the US spot Bitcoin exchange-traded fund (ETF), which has made it easier for institutional investors to invest in digital assets.

Congestion Issues The Solana network has received widespread attention but has also been affected by its own success. Hardhat Chad, an anonymous developer of the Ore blockchain project, proposed an innovative initiative to increase activity on the testnet.

He suggested that the Solana Foundation should issue tokens as rewards to encourage participation in testing activities. These tests are crucial for trying out new features and identifying potential issues before they reach the production environment.

This proposal comes at a time when Solana is facing serious congestion issues, with up to 75% of transactions potentially failing. Chad believes that reward incentives are necessary to build a stronger and more efficient network.

Sentiment: Positive