Solana price eyes $300 as Grayscale launches SOL-backed trust

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Solana (SOL) held onto its intraday good points on Nov. 30 as Grayscale Investments, the most important cryptocurrency fund on this planet, introduced that it might add SOL to its product line.

A $300 SOL forward?

SOL rallied to just about $217.50 after rising by over 6.50% intraday. The Solana token’s good points got here primarily as part of a restoration transfer that began Nov. 28, whereby it rebounded over 20% upon testing a reliable multi-month ascending trendline as help (close to $190), as proven within the chart under.

Solana price eyes $300 as Grayscale launches SOL-backed trust
SOL/USDT day by day worth chart that includes Ascending Trendline help. Supply: TradingView

The newest bout of shopping for close to the trendline help additionally helped push SOL over the 23.6 Fib line (~$204) of its Fibonacci retracement graph, drawn from the $23.22-swing low to the $260.69-swing excessive. Because of this, the $260-price stage seems just like the final line of protection between SOL and a brand new report excessive.

“SOL, though, appears like exhaustion, nonetheless $300-something is feasible (this season),” noted @fomocapdao, an impartial market analyst, including:

“It is dependent upon the entire [ecosystem though], which means TVL, NFTs, Tabasco, bulletins of bulletins.”

“Continued urge for food” for Solana

Grayscale’s determination so as to add Solana into its service portfolio promised to make SOL seen throughout extra high-net-worth and institutional traders. 

That’s primarily due to Solana’s unimaginable progress as a blockchain venture in 2021. The layer-one protocol emerged as a rival to fellow smart contracts platform Ethereum after offering customers with one of many lowest-costing and quickest public ledgers.

Solana price eyes $300 as Grayscale launches SOL-backed trust
Solana blockchain efficiency versus others. Supply: Reddit

Solana’s ecosystem attracted over 500 tasks unfold throughout decentralized finance (DeFi), nonfungible tokens (NFT), Net 3.0, and different sectors, with 1.2 million lively customers on the community. Amongst them is Serum, a decentralized derivatives exchange backed by billionaire Sam Bankman-Fried’s FTX and Alamada Analysis.

Because of this, the worth of SOL, which works as a fee and staking token inside the Solana ecosystem, surged by greater than 10,700% year-over-year, with its circulating market capitalization peaking close to $77.93 billion in November.

Solana price eyes $300 as Grayscale launches SOL-backed trust
SOL circulating market capitalization. Supply: Messari

Now valued at over $70 billion, Solana remains to be the fourth-largest blockchain by market capitalization, with Grayscale CEO Michael Sonnenshein noting that there’s already a “continued urge for food” amongst traders to achieve publicity within the blockchain venture.

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The statements got here after Coinshares, a London-based asset administration agency, reported internet capital inflows value over $250 million into the SOL-based exchange-traded merchandise (ETP). This month alone, the Solana ETPs attracted round $42.2 million, Coinshares underscored in its Nov. 29 report.

Regardless of the calls for SOL to hit $300 subsequent, the token nonetheless faces draw back dangers due to a couple basic points, together with extreme valuations on longer-timeframe charts and the possibility of network outages.

The views and opinions expressed listed here are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, it is best to conduct your personal analysis when making a choice.