All eyes are on Solana this week as institutional interest reaches new heights and top analysts brace for an imminent price rally to $200 and beyond.
But with Solana excitement ramping up, should investors capitalize by investing in the ecosystem’s first layer 2 blockchain, Solaxy?
Galaxy Digital, Ark Invest, BlackRock Show Solana Interest
Solana is gaining an increasingly large foothold within the institutional market. Most recently, Galaxy Digital, a digital asset investment company, swapped $105 million worth of $ETH for $SOL. This dealt yet another blow to the already-struggling Ethereum while reaffirming Solana’s growing presence.
Market data shows that Solana has increased 6.45% this month while Ethereum decreased by 19%. And data also shows that Ethereum’s lackluster performance continues to spiral, with a 1% selloff this week, while Solana is up over 5%.
According to Wu Blockchain, Galaxy Digital transferred 65,600 $ETH to Binance and withdrew 752,240 $SOL.
And that’s not the only firm to show interest in Solana this month. Cathie Wood’s Ark Invest just made its first direct Solana investment, purchasing the Toronto-based Solana staking ETF, $SOLQ.
A tweet from Solana Floor reveals Ark Invest controls $5 million of $SOLQ via its $ARKW US-based ETF.
Meanwhile, $11.5 trillion asset manager BlackRock moved its flagship tokenized money market fund BUIDL to the network last month, adding further depth to Solana’s institutional foothold.
Experts target near-term $SOL rally beyond $200
With Solana proving the new golden child for smart money players, analysts believe it could enjoy substantial upward growth in the weeks ahead.
Popular trader Alpha Shot lays out a simple plan for $SOL to retest the $120 key level to form an inverse head-and-shoulders pattern. This would spark an explosive rally to $220, according to his chart.
Should this play out as the analyst predicts, the pullback to $120 would be brief and swept up by bulls; hence, why the price would explode afterward.
And as evident by recent institutional interest, there are clearly enough whales watching $SOL right now who will step in and bid should the price pullback.
However, prominent analyst Christiaan DeFi believes there will be no such pullback, forecasting a run toward $250, effective immediately. The analyst notes that $SOL recently broke a descending wedge chart pattern to the upside, signalling a bullish reversal after the price collapsed in Q1.
But while analysts brace for significant $SOL gains in the coming weeks, one of the best ways to ride this bullish wave might just be Solaxy, the first-ever Solana layer 2 blockchain.
Solaxy Presale Raises $31M, Launches L2 Test Net
Solaxy is making rapid progress with the development of its layer 2 scaling solution. It just launched its test network and successfully completed 1 million transactions.
The next developments include establishing a Solana-Solaxy bridge and an integrated developer environment, which will allow builders to launch Solaxy-based dApps.
Solaxy will be capable of 10,000 transactions per second, making it faster and cheaper than Solana. This increased scalability will also make it more reliable than the Solana main network, as it can handle more demand without breaking.
This is a crucial consideration since it solves Solana’s most pressing pain point: congestion.
And right now, Solaxy is available to buy via a token presale. It has raised $31 million so far, illustrating incredible market appeal.
However, with Solana worth well over $70 billion, there is massive room for $SOLX to continue growing once it lists on the open market.
Experts are awakening to this potential, with Borch Crypto recently tipping it for 50x gains.
However, price increases will occur as the ICO advances, with the next one in under two days.
This means that potential investors should act quickly to secure the best price.
This article is for informational purposes only and does not provide financial advice. Cryptocurrencies are highly volatile, and the market can be unpredictable. Always perform thorough research before making any cryptocurrency-related decisions.