Solana news: Institutional Inflows Drive Solana to Four-Month Highs
Institutional Investors Return to Solana
Solana has experienced a significant uptick in institutional investment, with ETF inflows totaling $90 million since the start of the month. This marks the highest monthly net inflow for Solana ETFs in over three months, according to SoSoValue data. On May 11 alone, inflows reached $26 million, the largest daily figure since late February.
These inflows have increased Solana ETF assets to $1.02 billion, representing nearly 2% of SOL's total market capitalization. The renewed interest has pushed SOL to a four-month high, with prices approaching the $100 psychological level.
Mixed Sentiment in Derivatives Markets
Despite strong ETF inflows, derivatives data present a mixed outlook. CoinGlass reports the long/short ratio for SOL is below 1, indicating more traders are bearish. However, derivative trading volume has surged 33% to $12.81 billion. Options volume has also increased by 116%, reaching $37.75 million, and open interest is up 22% to $125 million.
Broader market sentiment remains cautious due to geopolitical tensions and rising inflation, which continue to impact the crypto sector.
Network Upgrades and Adoption
Solana's fundamentals are also strengthening. The Alpenglow upgrade, the largest consensus change in Solana's history, is now live on the community test cluster. This upgrade aims to make the network significantly faster and is scheduled for mainnet rollout in the third quarter.
Additionally, Western Union has launched its USDPT stablecoin on Solana, furthering network adoption. Regulatory clarity may also improve as the CLARITY Act advances in the U.S. Senate.
Technical Analysis and Outlook
Technical analysts note a strong buy sentiment for SOL, with immediate resistance at $95. A successful breakout could see SOL testing the $100 level in the near term.
